The SEC has sued Silvergate Capital Corporation, the parent company of a crypto-friendly bank, for allegedly aiding fraud at the now-defunct FTX exchange.
In a filing in the U.S. District Court for the Southern District of New York on July 1, the SEC accused Silvergate, former CEO Alan Lane, and former Chief Risk Officer Kathleen Fraher of misleading investors about the strength of its Bank Secrecy Act/Anti-Money Laundering compliance program and “cryptocurrency customer oversight” like FTX.
The SEC also charged former Silvergate CFO Antonio Martino with “misleading investors about the company’s losses from planned securities sales following the collapse of FTX.” All parties except Martino have agreed to settle with the SEC.
