Silvergate Shares Slump Amid Fraud Probe by Justice Department

Silvergate Capital Corp. shares slumped on news that US prosecutors are looking into the bank’s dealings with fallen crypto giants FTX and Alameda Research.

The criminal investigation by the Justice Department’s fraud unit is examining Silvergate’s hosting of accounts tied to Sam Bankman-Fried’s businesses, Bloomberg News reported late Thursday, citing people who asked not to be identified discussing the confidential probe. The crypto-friendly bank hasn’t been accused of any wrongdoing and the inquiry, which is in its early phases, could end without charges being brought.