© Reuters
Investing.com – The U.S. Department of Justice is reportedly investigating Silvergate Capital’s ties to FTX and its trading arm Alameda Research.
The investigation focuses on the bank’s hosting of accounts related to the activities of FTX founder Sam Bankman-Fried. The lender was also pressured by US lawmakers to provide details on the extent to which it was aware of FTX’s irregularities.
Although the publicly traded bank has not been charged with any wrongdoing and the investigation may end without charge, the DoJ’s Fraud Unit wants to know how deep its ties to FTX ran.
Silvergate has worked with more than a dozen cryptocurrency companies that have failed, been monitored or investigated, including FTX and Alameda.
This is not the first time the bank has been put under the microscope. Last week, a bipartisan group of U.S. senators in Congress sent a letter to the CEO of Silvergate who said the crypto-friendly bank was “evasive” when questioned earlier about its role in the improper transfer. of funds from FTX clients to Alameda.