DOJ probes Silvergate over FTX, Alameda ties

The US Department of Justice is investigating Silvergate Capital for its dealings with FTX and Alameda Research. February 2 Report from Bloomberg.

Silvergate Bank has reportedly not been accused of any wrongdoing, and the investigation may end without any charges being filed against the company.

DOJ has not officially announced the investigation. Instead, Bloomberg obtained information about a top-secret investigation from an anonymous source.

Silvergate downplayed its exposure to FTX when the company went bankrupt in November. However, Banks’ relationship with FTX and Alameda soon came under scrutiny. In December, the US Senator suggested that the Silvergate account was at the center of his FTX collapse. Most recently, it was reported that Silvergate took out a $4.3 billion loan from the Federal Home Loan Bank during the bank run following his FTX demise.

Earlier this week, senators launched an investigation to find out if Silvergate was fully aware of FTX’s improper activities and mismanagement of its funds. Due to Silvergate’s failure to answer a similar question.

It’s unclear whether the Senator’s recent investigation led directly to today’s DOJ investigation. Also, he above is unclear exactly which, if any, links between Silvergate and FTX are being investigated as part of a supposed probe.

The tough post-FTX cryptocurrency market has further impacted Silvergate in a more general sense. This month, the company laid off his 40% of its workforce, or 200 of his employees.