Enforcement director Gurbir Grewal said Silvergate allegedly “failed to detect nearly $9 billion in suspicious transfers among FTX and its related entities.”
The United States Securities and Exchange Commission has filed a lawsuit against Silvergate Capital Corporation, the parent company behind a crypto-friendly bank that allegedly helped facilitate fraud at defunct exchange FTX.that Silvergate, former CEO Alan Lane, and former Chief Risk Officer Kathleen Fraher misled investors regarding the strength of its Bank Secrecy Act/Anti-Money Laundering compliance program and the “monitoring of crypto customers” like FTX.
The regulator also charged former Silvergate Chief Financial Officer Antonio Martino with “misleading investors about the company’s losses from expected securities sales following FTX’s collapse.” All parties, except Martino, have agreed to settle with the SEC. “The allegations made by the SEC are unfounded and irresponsible, and I look forward to presenting my case in court and clearing my name,” said Martino, according to a statement to Cointelegraph provided by his attorneys at law firm Linklaters.
According to SEC enforcement director Gurbir Grewal, Silvergate allegedly “failed to detect nearly $9 billion in suspicious transfers among FTX and its related entities,” leading to massive losses for investors. He alleged the firm and its executives “doubled down” on misleading investors following FTX’s collapse from November 2022 to January 2023.
Law Law Latest News, Law Law Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: verge - 🏆 94. / 67 Read more »