{"id":604337,"date":"2023-02-03T19:49:35","date_gmt":"2023-02-04T01:49:35","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/02\/03\/u-s-doj-probes-silvergate-for-fraud-over-ftx-dealings-stock-drops-22\/"},"modified":"2023-02-03T19:49:35","modified_gmt":"2023-02-04T01:49:35","slug":"u-s-doj-probes-silvergate-for-fraud-over-ftx-dealings-stock-drops-22","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/02\/03\/u-s-doj-probes-silvergate-for-fraud-over-ftx-dealings-stock-drops-22\/","title":{"rendered":"U.S DOJ Probes Silvergate For Fraud Over FTX Dealings, Stock Drops 22%"},"content":{"rendered":"<div>\n<ul>\n<li>The fraud unit of the Department of Justice has launched a probe into Silvergate Bank.\u00a0<\/li>\n<li>The prosecutors are looking into the bank\u2019s dealings with FTX and Alameda Research.<\/li>\n<li>The bank was recently grilled by U.S. Senators for its role in the mismanagement of customer funds in FTX.\u00a0<\/li>\n<li>News of the probe led to the company\u2019s share price tanking 20% in after-hours trading.\u00a0 \u00a0<\/li>\n<\/ul>\n<p>Silvergate, the notorious crypto-friendly bank that got caught up in the fallout from FTX\u2019s collapse, has become the subject of a criminal investigation by American authorities. The United States Department of Justice has reportedly launched a probe into the banks\u2019 dealings with the bankrupt crypto exchange and its sister firm Alameda Research.\u00a0<\/p>\n<h2><strong>Silvergate faces probe from DOJ\u2019s fraud unit<\/strong><\/h2>\n<p>According to a report by\u00a0<a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-02-02\/silvergate-faces-doj-fraud-probe-over-ftx-and-alameda-dealings\" rel=\"noreferrer noopener nofollow\">Bloomberg<\/a>, the fraud unit of the Justice Department is heading the investigation into Silvergate. People familiar with the matter revealed that the investigation is currently in the early phases and prosecutors are looking into the bank\u2019s hosting of accounts associated with\u00a0<a target=\"_blank\" href=\"https:\/\/en.ethereumworldnews.com\/sam-bankman-fried-tried-to-influence-witness-testimony\/\" rel=\"noreferrer noopener\">Sam Bankman-Fried<\/a>\u2019s failed crypto empire.\u00a0<\/p>\n<p>The report stated that the bank had not been accused of any wrongdoing and that the inquiry may end without the prosecutors filing any charges against the company. This investigation adds to the heap of legal trouble that the bank has been facing since FTX\u2019s collapse, including two class action lawsuits.\u00a0<\/p>\n<p>The DoJ\u2019s probe led to a drop of more than 22% in Silvergate Capital\u2019s share price during after-hours trading. The\u00a0<a target=\"_blank\" href=\"https:\/\/www.marketwatch.com\/investing\/stock\/si\" rel=\"noreferrer noopener nofollow\">stock<\/a>\u00a0was worth $20.97 at market close. This was just hours after the stock rallied nearly 50% thanks to asset management giant State Street increasing its stake in the company by a whopping 75%.\u00a0<\/p>\n<p>News of the criminal investigation comes just days after U.S Senators Elizabeth Warren, John Kennedy, and Roger Marshall penned a strongly worded\u00a0<a target=\"_blank\" href=\"https:\/\/www.warren.senate.gov\/imo\/media\/doc\/2023.01.30%20Follow-up%20Letter%20to%20Silvergate%20Bank%20re%20Crypto%20Exposure%20and%20FTX%20Impropriety1.pdf\" rel=\"noreferrer noopener nofollow\">letter<\/a>\u00a0to Silvergate Capital\u2019s CEO seeking answers about the bank\u2019s role in FTX\u2019s reckless handling of customer funds and the failure of the company\u2019s risk management and due diligence measures.\u00a0<\/p>\n<\/div>\n<p><a href=\"https:\/\/en.ethereumworldnews.com\/doj-probes-silvergate-fraud-ftx-dealings\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Aditya Anand<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The fraud unit of the Department of Justice has launched a probe into Silvergate Bank.\u00a0The prosecutors are looking into the bank\u2019s dealings with FTX and Alameda Research.The bank was recently grilled by U.S. Senators for its role in the mismanagement of customer funds in FTX.\u00a0News of the probe led to the company\u2019s share price tanking<\/p>\n","protected":false},"author":1,"featured_media":604338,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26885,101874],"tags":[],"class_list":["post-604337","post","type-post","status-publish","format-standard","has-post-thumbnail","category-probes","category-silvergate"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/604337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=604337"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/604337\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/604338"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=604337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=604337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=604337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}