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

The work that you and your team have performed on my behalf is exemplary.

JT

LATEST NEWS AND ARTICLES

September 5, 2025
Merrill Lynch Advisor Faces FINRA Disciplinary Action for Refusing to Cooperate with Investigation

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary proceedings against former Merrill Lynch broker Ali F. Chehab of Portland, Oregon. According to ThinkAdvisor, FINRA alleges that he refused to cooperate in an investigation into potential misconduct, including unauthorized trading and material misrepresentati...

September 4, 2025
Wells Fargo Ties $2,000 Bonus to Non-Solicitation Clause, Raising Advisor Concerns

Wells Fargo & Co. recently issued a $2,000 bank-wide award to its 215,000 employees, following the Federal Reserve’s June decision to lift its asset growth restrictions.

September 3, 2025
Kansas City Advisory Firms Agree to $25.5 Million Settlement Over No-Poach Allegations

Mariner Wealth Advisors, along with two other Kansas City-area firms, has agreed to a $25.5 million class action settlement over allegations that they illegally agreed not to solicit each other’s advisors.