(Reuters) – U.S. prosecutors in the Justice Department’s fraud unit are looking into Silvergate Capital Corp’s dealings with bankrupt crypto exchange FTX and Alameda Research, Bloomberg News reported on Thursday.
The criminal investigation is examining Silvergate’s hosting of accounts tied to FTX founder Sam Bankman-Fried’s businesses, the report said, citing people familiar with the matter.
Silvergate has not been accused of any wrongdoing and the inquiry, which is in its early phases, could end without charges being brought, according to the report.
The Department of Justice and Silvergate Capital did not immediately respond to Reuters requests for comment.
Earlier this week, a group of bipartisan U.S. senators sent a letter to Silvergate asking for details of its risk management practices and its dealings with FTX.
In January, the crypto-focused bank reported a net loss of $1 billion in the fourth quarter, after investors spooked by FTX’s collapse pulled out more than $8 billion in deposits.
(Reporting by Manya Saini in Bengaluru; Editing by Devika Syamnath)
Source: KFGO
