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Axios on MSNSEC sues fallen crypto bank parent Silvergate and execsMore news
Silvergate said it had an effective anti-money laundering (AML) program tailored specifically to crypto but actually didn’t adequately monitor “approximately $1 trillion” in transactions, the complaint says.
The U.S. Securities and Exchange Commission filed a complaint against Silvergate Bank's parent entity and its former executives on Monday.
The $63mn includes penalties assessed by the US Securities and Exchange Commission, the Federal Reserve and the California Department of Financial Protection and Innovation. The SEC in a lawsuit on Monday said Silvergate and three executives had deceived investors about its legal compliance and monitoring of clients,
The U.S. Securities and Exchange Commission (SEC) sued Silvergate Capital Corporation, the parent company to crypto-friendly Silvergate Bank, on
Silvergate Capital, formerly one of the top banks serving crypto companies, agreed Monday to pay $63 million to federal and state regulators to resolve investigations into alleged deficiencies in its anti-money laundering program.
Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering program failed to properly monitor over $1 trillion worth of customer transactions.
Silvergate's former CEO and onetime chief risk officer settled allegations that they misled investors about the strength of the bank's anti-money laundering compliance program. Meanwhile, Silvergate's former CFO denied separate allegations by the SEC and vowed to defend himself in court.
Silvergate and its former CFO Antonio Martino had misrepresented the company's financial condition during a liquidity crisis and bank run following FTX's collapse.