Silvergate Bank Is Requested By US Senators For FTX-Related Information

Three US Senators have demanded cryptocurrency bank Silvergate Capital to reveal any information connected to transfers of monies for Sam Bankman-defunct Fried’s FTX enterprise.

Senators Elizabeth Warren, Roger Marshall, and John F. Kennedy wrote to Silvergate CEO Alan Lane, saying:

“Your bank’s involvement in the transfer of FTX customer funds to Alameda reveals what appears to be an egregious failure of your bank’s responsibility to monitor for and report suspicious financial activity carried out by its clients.”

In a public letter yesterday, Lane attempted to reassure investors and customers about the bank’s financial health and compliance with federal rules.

The group of senators added:

“The public is owed a full accounting of the financial activities that may have led to the loss of billions in customer assets, and any role that Silvergate may have played in these losses.”

Senators are particularly interested in learning if the bank reported such transactions to the Financial Crimes Enforcement Network and why former Chief Risk Officer Tyler Pearson departed the bank.

The letter expresses concerns about the banking services provided by Silvergate to both FTX and Bankman-Fried’s trading firm, Alameda Research.

“We are concerned about Silvergate’s role in these activities because of reports suggesting that Silvergate facilitated the transfer of FTX customer funds to Alameda.”

Warren warned last week about the risks of crypto companies being enmeshed with the financial system. Silvergate Bank has been a major U.S.-based junction for crypto companies seeking access to fiat bank accounts since its inception.

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