All About Crypto World

Silvergate Faces DOJ Investigation Over FTX And Alameda Dealings: Report


The Crypto Bank hasn’t been Accused of wrongdoing, yet prosecutors need to perceive how profound the dealings between the Crypto Bank and FTX went.


Crypto bank Silvergate is reportedly being probed by the United States Department of Equity fraud unit over its involvement with the bankrupt FTX exchange and its affiliates.

The probe is investigating Silvergate’s Facilitating of accounts Connected to former FTX CEO Sam Bankman-Fried’s businesses, according to a Feb. 3 report by Bloomberg, which cited “people acquainted with the matter.”

The California-based Crypto bank isn’t accused of any wrongdoing, yet Investigators are attempting to discover how profound the dealings with FTX and Alameda went.


Silvergate was heavily impacted by the Collapse of FTX in November, detailing a $1 billion loss last quarter. The bank hacked out 40% of its staff and disclosed taking out billions of dollars in loans to prevent a liquidity emergency and bank run following the fall of the SBF domain.

The Federal Investigators are attempting to ascertain whether Silvergate and some other companies working with FTX knew about the situation.

According to Silvergate, Alameda opened an account with the bank before the launch of FTX.It Claims to have conducted due industriousness and ongoing monitoring at the time, according to the report.


Spread the love