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

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

March 4, 2026
Modern Fraud Schemes Escalate in Scale and Sophistication

A recent panel discussion at the Financial Services Institute OneVoice conference in San Diego highlighted how rapidly evolving fraud schemes continue to victimize both retail and wealthy investors.

March 3, 2026
FINRA Suspends Former Stifel Broker Over Costly Account Switching Trades

The Financial Industry Regulatory Authority (FINRA) suspended a former Stifel, Nicolaus & Co.

March 2, 2026
FINRA Suspends Cetera Broker for Accepting $50,000 Client Bequest Without Firm Approval

The Financial Industry Regulatory Authority (FINRA) imposed a $10,000 fine and a seven-month suspension on an independent broker for accepting a $50,000 bequest from a client without obtaining prior firm approval.