The United States Department of Justice (DoJ) are scrutinizing Silvergate’s relationship with embattled crypto firms FTX and Alameda Research.
The DoJ fraud unit is looking into Silvergate’s hosting of accounts connected to FTX and Alameda Research, according to a source familiar with the matter quoted by Bloomberg.
The crypto-friendly bank plays a crucial role in the industry as its services are used by some of the prominent names such as FTX, Bitstamp, Kraken, Gemini, Circle, Coinbase, Paxos, and Crypto.com.
Silvergate Under The Microscope
Since 2019, Silvergate has drawn thousands of customers including crypto exchanges, companies, and leading figures.
The bank reportedly processed billions of dollars each month. Deposits with FTX and multiple companies under founder Sam Bankman-Fried allegedly account for $1 billion of Silvergate’s value.
But the sudden demise of FTX caused brutal changes in the industry. Apart from BlockFi,…
