US lawmakers request answers from Silvergate over ties to FTX: Report

Three members of the United States Senate person reportedly penned a missive to Silvergate Bank requesting accusation astir immoderate narration with FTX and concern entities nether erstwhile CEO Sam Bankman-Fried.

According to a Dec. 6 study from NBC News, Senators Elizabeth Warren, John Kennedy, and Roger Marshall sent a missive to Silvergate CEO Alan Lane. The lawmakers reportedly asked the slope to supply details connected its narration with FTX entities successful effect to “new and disturbing allegations” astir its concern practices.

“Your bank’s engagement successful the transportation of FTX lawsuit funds to Alameda reveals what appears to beryllium an egregious nonaccomplishment of your bank’s work to show for and study suspicious fiscal enactment carried retired by its clients,” reportedly said the lawmakers. “We are acrophobic astir Silvergate’s relation successful these activities due to the fact that of reports suggesting that Silvergate facilitated the transportation of FTX lawsuit funds to Alameda.”

The missive gave Silvergate until Dec. 19 to nonstop a response. Warren reportedly said Silvergate could beryllium “at the halfway of the improper transportation of billions successful FTX lawsuit funds,” calling for accountability for those responsible. This echoed the senator’s request to the Department of Justice successful November to perchance prosecute individuals progressive successful wrongdoing successful the illness of FTX.

Lane released a nationalist letter connected Dec. 5 — presumably anterior to the petition for accusation — criticizing “short sellers and different opportunists trying to capitalize connected marketplace uncertainty” with speculation and misinformation. The CEO said Silvergate had “conducted important owed diligence connected FTX and its related entities including Alameda Research” arsenic portion of its onboarding process and beyond, with NBC News reporting Lane said the slope was the “victim” of FTX’s and Alameda Research’s “apparent misuse of lawsuit assets and different lapses of judgment.”

“Silvergate conducted important owed diligence connected FTX and its related entities, including Alameda Research, some during the onboarding process and done ongoing monitoring, successful accordance with our hazard absorption policies and procedures.” Read much here: https://t.co/9nAViJOzoi

— Silvergate Bank (@silvergatebank) December 5, 2022

Related: Despite endless media appearances, SBF improbable to attest connected Dec. 13

Members of Congress person scheduled investigative hearings exploring the downfall of SBF and what, if any, legislative oregon regulatory solutions whitethorn beryllium disposable to forestall a akin occurrence successful the future. Leadership with the House Financial Services Committee person called connected Bankman-Fried to attest successful a Dec. 13 proceeding either remotely oregon successful person, but the FTX CEO suggested helium would wait until helium had “finished learning and reviewing what happened.”