Three members of the United States Senate have reportedly penned a letter to Silvergate Bank requesting details about any relationship with FTX and enterprise entities underneath former CEO Sam Bankman-Fried.
According to a Dec. 6 report from NBC News, Senators Elizabeth Warren, John Kennedy, and Roger Marshall despatched a letter to Silvergate CEO Alan Lane. The lawmakers reportedly requested the financial institution to present particulars on its relationship with FTX entities in response to “new and disturbing allegations” about its enterprise practices.
“Your financial institution’s involvement within the switch of FTX buyer funds to Alameda reveals what seems to be an egregious failure of your financial institution’s duty to monitor for and report suspicious monetary exercise carried out by its purchasers,” reportedly mentioned the lawmakers. “We are involved about Silvergate’s function in these actions due to studies suggesting that Silvergate facilitated the switch of FTX buyer funds to Alameda.”
The letter gave Silvergate till Dec. 19 to ship a response. Warren reportedly mentioned Silvergate might be “on the heart of the improper switch of billions in FTX buyer funds,” calling for accountability for these accountable. This echoed the senator’s request to the Department of Justice in November to probably prosecute people concerned in wrongdoing within the collapse of FTX.
Lane launched a public letter on Dec. 5 — presumably prior to the request for data — criticizing “quick sellers and different opportunists attempting to capitalize on market uncertainty” with hypothesis and misinformation. The CEO mentioned Silvergate had “carried out vital due diligence on FTX and its associated entities together with Alameda Research” as a part of its onboarding course of and past, with NBC News reporting Lane mentioned the financial institution was the “sufferer” of FTX’s and Alameda Research’s “obvious misuse of buyer belongings and different lapses of judgment.”
“Silvergate carried out vital due diligence on FTX and its associated entities, together with Alameda Research, each in the course of the onboarding course of and thru ongoing monitoring, in accordance with our danger administration insurance policies and procedures.” Read extra right here: https://t.co/9nAViJOzoi
— Silvergate Bank (@silvergatebank) December 5, 2022
Related: Despite countless media appearances, SBF unlikely to testify on Dec. 13
Members of Congress have scheduled investigative hearings exploring the downfall of SBF and what, if any, legislative or regulatory options could also be accessible to stop an analogous prevalence sooner or later. Leadership with the House Financial Services Committee have referred to as on Bankman-Fried to testify in a Dec. 13 listening to both remotely or in particular person, however the FTX CEO advised he would wait till he had “completed studying and reviewing what occurred.”