A group of senators sent a request to Silvergate Bank for information regarding joint operations with FTX and relations with the founder of the bankrupt crypto exchange.
The Senate Banking Committee, composed of Elizabeth Warren, John Kennedy and Roger Marshall, has sent a request for information to the management of the crypto bank regarding its business relationship with FTX.
“In the weeks following the shocking collapse of FTX, new and troubling allegations of misconduct by Silvergate continue to surface. The bank’s involvement in Sam Bankman-Freed’s covert operations is especially worrisome. This included reports that Bankman-Fried secretly transferred about $10 billion in customer funds to trading company Alameda Research to fund risky bets, violating both U.S. securities laws and FTX’s own terms of service. We are concerned about the role of Silvergate and suspect that the crypto bank facilitated the illegal transfer of FTX customer funds to Alameda,” the Senate Banking Committee letter reads.
Silvergate acted as the main settlement bank of the FTX cryptocurrency exchange and serviced more than 20 accounts of the FTX Group companies. Sam Bankman-Fried previously posted a review on the Silvergate website about working closely with the bank, stating that he “can hardly overstate how much Silvergate has revolutionized banking for the FTX Group and all blockchain companies in the industry.” After the FTX crash, the bank removed the recall.
“Silvergate appears to be at the center of a mistransfer of billions of FTX customer funds. Americans need answers. Those responsible for wrongdoing must be held accountable,” Senator Warren said in a statement.
On Tuesday, December 6, the CEO of Silvergate Capital, the parent company of Silvergate Bank, Alan Lane (Alan Lane) said that a number of traders and investors are trying to capitalize on the uncertainty of the cryptocurrency market, and lawmakers interested in its destruction are trying to speculate on negative news.
Source: Bits
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