• Senators and House members held hearings to investigate Silvergate Capital, the parent organization of Silvergate Bank, about its connections to FTX.
• Senators John Kennedy, Roger Marshall, and Elizabeth Warren wrote a letter to Silvergate demanding information about the demise of the crypto exchange FTX.
• Silvergate was given until Feb. 13 to respond to questions from Congress over its role in the FTX scandal.
Recently, the US Senate held hearings to investigate Silvergate Capital, the parent organization of Silvergate Bank, about its connections to FTX, the crypto exchange that experienced a liquidity issue and filed for bankruptcy in November 2022. The Senators wanted to know how Silvergate handled the transfer of customer assets to Alameda, and whether FTX had misappropriated customer funds.
In response, Senators John Kennedy, Roger Marshall, and Elizabeth Warren wrote a letter to Silvergate demanding information, and questioned the institution’s earlier comments which they found “evasive.” The letter gave Silvergate until Dec. 19 to respond, but the bank declined to fully answer due to the prohibitions on releasing, “secret supervisory information.”
In response to this, the Senators urged the Justice Department to look into the collapse of the crypto exchange and consider bringing certain people to justice, including Sam Bankman-Fried, the former CEO of FTX. Further, the Senators requested that Silvergate respond to questions from Congress over its role in the FTX scandal by Feb. 13th.
The US Senate’s investigation into Silvergate’s involvement in the FTX scandal is ongoing. It remains to be seen what the outcome of the investigation will be. However, it is clear that the Senators are taking the situation seriously and are committed to getting to the bottom of this issue.