The U.S. Securities and Exchange Commission (SEC) has filed a securities fraud lawsuit against Silvergate Bank, a California-based bank associated with the collapsed cryptocurrency exchange FTX.
The claim, filed in the federal court in Manhattan, alleges securities fraud against Silvergate Capital. While the filing cites “securities fraud” as the basis for the lawsuit, specific details of the allegations were not provided.
Several former senior executives of Silvergate are also named as defendants in the lawsuit.
Silvergate is among the few traditional banks that early ventured into the digital asset industry. However, this involvement during the cryptocurrency market collapse in late 2022 and 2023 had significant repercussions.
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The closure of the major cryptocurrency exchange FTX significantly impacted Silvergate’s operations, ultimately leading to the SEC’s lawsuit.
The SEC’s action against Silvergate Bank underscores the bank’s role in FTX and allegations of non-compliance with cryptocurrency trading regulations.
