The U.S. Securities and Exchange Commission (SEC) has filed a securities fraud lawsuit against Silvergate Bank, a California-based lender associated with the collapsed cryptocurrency exchange FTX.
The claim, lodged in federal court in Manhattan, accuses Silvergate Capital of securities fraud. While the filing cites “securities fraud” as the basis for the complaint, it does not provide detailed information about the allegations.
Several former executives of Silvergate are also named as defendants in the lawsuit.
Silvergate was one of the few traditional banks to engage with the digital asset industry in its early stages. However, this involvement had significant implications during the cryptocurrency market crash in late 2022 and 2023.
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FTX’s collapse, a major player in the cryptocurrency exchange market, severely impacted Silvergate’s operations and ultimately led to the SEC lawsuit.
This SEC action against Silvergate Bank underscores the bank’s role in FTX and its alleged failure to comply with crypto transaction provisions.
