The U.S. Securities and Exchange Commission (SEC) has sued Silvergate Bank's parent company, Silvergate Capital, and its former executives, alleging they misled the public about the effectiveness of its anti-money laundering (AML) and Bank Secrecy Act (BSA) protections. The SEC claims that Silvergate did not adequately monitor $1 trillion in crypto transactions and made false statements regarding its AML procedures. The lawsuit also names Silvergate's former CEO and former CFO Antonio Martino, accusing them of misleading investors about the company’s losses from expected securities sales following the collapse of FTX. Silvergate Capital has agreed to settle the charges with the SEC, the Federal Reserve, and California's financial regulator, agreeing to pay up to $63 million, including a $50 million civil penalty. The SEC also alleges securities fraud, which some believe is partially performative given Silvergate's current state.
LATEST: SILVERGATE CAPITAL HAS SETTLED WITH SEC, WILL PAY $50M PENALTY
UPDATE: Silvergate settled charges with the SEC, Federal Reserve and California's financial regulator alleging it made misleading disclosures about its anti-money laundering program, agreeing to pay up to $63 million. @jesseahamilton @nikhileshde report https://t.co/C3N4IT9KL5
*SILVERGATE BANK AGREES TO SETTLE AFTER SEC SAYS THE CRYPTO-FRIENDLY BANK MADE FALSE STATEMENTS ABOUT AML PROCEDURES - THE BLOCK PRO
UPDATE: SILVERGATE CAPITAL SETTLES WITH SEC, WILL PAY $50M PENALTY https://t.co/PLq9pQDfv7
[THE BLOCK PRO] Silvergate Capital settles with the SEC, agreeing to pay a $50 million civil penalty https://t.co/ztQKcE6R4j
*SILVERGATE CAPITAL SETTLES WITH SEC, WILL PAY $50 MILLION CIVIL PENALTY - THE BLOCK PRO
Silvergate Bank didn’t adequately monitor $1 trillion in crypto transactions, SEC says: Illustration by Alex Castro / The Verge Silvergate Bank, once a cornerstone of the crypto financial world until its collapse in early 2023, defrauded… https://t.co/QOtR9QXuaO #ai #ainews
NEW: SEC Charges Silvergate Capital, Former CEO for Misleading Investors about Compliance Program The SEC also charged Silvergate's former CFO Antonio Martino, with misleading investors about the company’s losses from expected securities sales following FTX’s collapse https://t.co/k7l7RtGhhJ
Silvergate Bank didn’t adequately monitor $1 trillion in crypto transactions, SEC says https://t.co/ECChFqZAUB
US SEC sues Silvergate Bank over false statements made about AML procedures https://t.co/KvWZ00TScE
No Wai. Silvergate Bank? Securities fraud? You don’t say! https://t.co/TEm43YgeMJ
SEC suing Silvergate for securities fraud, which (as @matt_levine readers know) is not exactly the world’s most specific accusation. Given that Silvergate is dust and memories, I think this is partially performative. Names executives as defendants, too. https://t.co/wJ0NaadMpr
JUST IN: The @SECgov sued Silvergate Bank's parent company and former executives, alleging they misled the public about how effective its anti-money laundering/Bank Secrecy Act protections were. @nikhileshde @jesseahamilton report https://t.co/HtLj5w8yrv