Silvergate Bank, known for its alignment with the cryptocurrency market and which ceased operations in March 2023, is now facing a lawsuit initiated by the United States Securities and Exchange Commission (SEC).

The lawsuit, filed Monday, accuses the institution’s leaders of misleading investors and failing to properly oversee approximately $1 trillion in transactions.

Among the neglected operations, approximately US$9 billion was moved by FTX, one of the largest cryptocurrency exchanges at the time, which declared bankruptcy in November 2022. Investigations indicate that the fraudulent practices of Sam Bankman-Fried, co-founder and CEO of FTX, and his collaborators, were a crucial factor in the collapse.

The SEC’s lawsuit goes beyond the bank, and also includes top executives at Silvergate Capital Corporation, including former CEO Alan Lane, former COO Kathleen Fraher and former CFO Antonio Martino. They are accused of a variety of securities violations.


The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.


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