DOJ Probes Silvergate Over FTX, Alameda Research Involvement

Posted on February 20th, 2023 at 4:00 PM
DOJ Probes Silvergate Over FTX, Alameda Research Involvement

U.S. Department of Justice (DOJ) prosecutors have launched a criminal investigation into Silvergate’s dealings with FTX and Alameda Research, including Silvergate’s hosting of accounts tied to Sam Bankman-Fried’s businesses. 

However, Silvergate has yet to be accused of any wrongdoing and the investigation potentially could end without the filing of any charges. Silvergate has faced challenges amidst FTX’s collapse as the bank reported a $1 billion loss last quarter and subsequently terminated 40% of its staff. The DOJ initiated the probe in part to determine whether banks and intermediaries working Bankman-Fried’s businesses were aware of his scheme to defraud millions of investors. 

According to Silvergate, Alameda Research opened an account with the crypto bank in 2018 before FTX was launched. Silvergate additionally noted that it is reviewing transactions involving FTX and Alameda accounts and that it previously conducted due diligence on the firms during the onboarding process and via periodic monitoring. Furthermore, Silvergate is defending itself against a separate class action suit alleging securities fraud by investors who accuse the bank of withholding information about its financial controls, citing the FTX meltdown.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters. 

Tags: Eccleston, Eccleston Law

Return to Archive

TESTIMONIALS

Previous
Next

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

October 30, 2025
SEC Sues Former Franchise Group CEO Over $350 Million Hedge Fund Fraud

The Securities and Exchange Commission (SEC) filed a lawsuit against Brian Kahn, former CEO of Franchise Group Inc., alleging he defrauded investors of more than $350 million in a multi-year investment adviser fraud tied to the collapse of Prophecy Asset Management (Prophecy).

October 29, 2025
FINRA Foundation Study Reveals Alarming Investor Susceptibility to Fraudulent Offers

The FINRA Investor Education Foundation (FINRA Foundation) has released preliminary findings from its upcoming report, Investors in the United States: A Report of the National Financial Capability Study.

October 28, 2025
UBS Seeks Court Order Against $1.4 Billion Florida Advisory Team Over Client Solicitation Allegations

UBS Wealth Management USA has filed a lawsuit and requested a temporary restraining order (TRO) against a $1.4 billion advisory team that recently departed to join Elevation Point, a West Palm Beach-based registered investment advisor launched just 15 months ago.