Crypto Bank Silvergate Asked by US Senators to Explain FTX Ties
- Silvergate shares have tumbled around 85% so far this year
- Short interest in stock has soared in wake of FTX’s collapse
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Crypto bank Silvergate Capital Corp. was asked by three US Senators to release all records related to transfers of funds for the collapsed FTX empire of Sam Bankman-Fried.
“Your bank’s involvement in the transfer of FTX customer funds to Alameda reveals what appears to be an egregious failure of your bank’s responsibility to monitor for and report suspicious financial activity carried out by its clients,” Senators Elizabeth Warren, Roger Marshall and John Kennedy wrote in a letter released Tuesday. “The public is owed a full accounting of the financial activities that may have led to the loss of billions in customer assets, and any role that Silvergate may have played in these losses.”