US Senators Press Crypto Bank Silvergate on Ties to FTX: Bloomberg

The lawmakers said in a letter that Silvergate’s previous responses to queries were “evasive and incomplete.”

AccessTimeIconJan 31, 2023 at 2:35 p.m. UTC
Updated Jan 31, 2023 at 8:41 p.m. UTC

A bipartisan group of U.S. senators is pushing Silvergate Capital (SI) to provide more details about what it knew about FTX’s alleged misuse of customer funds, according to a report in Bloomberg.

In a letter sent to Silvergate on Monday that was viewed by Bloomberg, the senators asked Silvergate about its connections to the collapsed crypto exchange, saying the firm’s previous responses to similar questions in December were “evasive and incomplete.”

The senators include Elizabeth Warren (D-Mass.), Roger Marshall (R-Kansas) and John Kennedy (R-La.).

A spokesperson for the bank said that "Silvergate operates a robust compliance and risk management program. In accordance with its risk management policies and procedures, Silvergate conducted significant due diligence on FTX and its related entities, including Alameda Research."

Shares of Silvergate were up more than 4% in early trading on Tuesday, but have declined 88% over the past year.

Sen. Warren's office did not immediately respond to a request for comment.

UPDATE (Jan. 31, 15:12 UTC): Updated with non-response from Silvergate and Sen. Warren's office.

UPDATE (Jan. 31, 19:33 UTC): Updated with statement from Silvergate.

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