Enforcement director Gurbir Grewal said Silvergate allegedly “failed to detect nearly $9 billion in suspicious transfers among FTX and its related entities.”
The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Silvergate Capital Corporation, the parent company behind a crypto-friendly bank that allegedly helped facilitate fraud at defunct exchange FTX.
In a July 1 filing in the U.S. District Court for the Southern District of New York, the SEC alleged that Silvergate, former CEO Alan Lane, and former Chief Risk Officer Kathleen Fraher misled investors regarding the strength of its Bank Secrecy Act/Anti-Money Laundering compliance program and the “monitoring of crypto customers” like FTX.
The regulator also charged former Silvergate Chief Financial Officer Antonio Martino with “misleading investors about the company’s losses from expected securities sales following FTX’s collapse.” All parties, except Martino, have agreed to settle with the SEC.
