1 year ago
The U.S. Department of Justice is probing Silvergate Capital implicit its dealings with FTX and Alameda Research, according to a Feb. 2 study from Bloomberg.
Silvergate Bank has reportedly not been accused of wrongdoing, and the probe could reason without immoderate charges being filed against the firm.
The DOJ has not officially announced the probe. Instead, Bloomberg obtained accusation astir the confidential probe from anonymous sources.
Silvergate downplayed its exposure to FTX astatine the clip of the second company’s illness successful November. However, the bank’s ties to FTX and Alameda soon became much scrutinized. In December, U.S. senators suggested a Silvergate relationship was at the center of the FTX collapse. More recently, reports suggested that Silvergate received a $4.3 cardinal loan from the Federal Home Loan Bank during a slope tally that followed FTX’s collapse.
Earlier this week, senators launched an inquiry to observe whether Silvergate was afloat alert of FTX’s improper activities and mismanagement of funds. That renewed effort resulted from Silvergate’s nonaccomplishment to reply akin questions successful December.
It is unclear whether the senators’ caller inquiries led straight to today’s DOJ probe. It is besides unclear precisely which, if any, of the links betwixt Silvergate and FTX described supra are nether probe arsenic portion of the expected probe.
The harsh, post-FTX crypto marketplace has additionally impacted Silvergate successful a much wide sense. This month, the institution laid disconnected 40% of its staff, oregon 200 employees.
The station DOJ probes Silvergate implicit FTX, Alameda ties appeared archetypal connected CryptoSlate.
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