Silvergate Bank Hit With Fraud Probe Over FTX-Alameda Relationship
Crypto bank Silvergate is being investigated by the US Justice Department’s fraud unit for its dealings with FTX and its sister trading arm, Alameda Research. The investigation is reviewing accounts tied up with both businesses, which have been widely accused of engaging in a multi-billion dollar fraud using FTX customer funds. What Happened at Silvergate? As reported by Bloomberg on Thursday, the La Jolla, California-based bank hasn’t been accused of any wrongdoing, and investigations could end without any charges being laid. However, the probe comes off the back of a tense exchange between Silvergate and US congress, in which certain senators found Silvergate’s comments about its ties to FTX “evasive” and “incomplete.” Specifically, senators Elizabeth Warren, Roger Marshall, and John Kennedy sent a letter to Silvergate in December questioning to what extent the bank was involved in improperly moving FTX user funds to Alameda. WoD Limited Genesis Edition. Join Now...