SEC Files Lawsuit Against Silvergate Bank for Securities Fraud

The SEC has taken legal action against Silvergate Bank, a cryptocurrency-focused lender, for securities fraud. The lawsuit, filed in a federal court in Manhattan, is connected to the collapse of crypto exchange FTX, which had strong ties to Silvergate. Along with the bank, several former executives were named as defendants in the case. Silvergate Bank had been one of the few traditional banks willing to work with the digital asset industry in its early stages. However, this decision left the bank deeply involved in the cryptocurrency industry meltdown that occurred in 2022 and 2023. The bank’s involvement with FTX and its failure to comply with crypto-related transactions are the reasons behind the SEC’s lawsuit. This is a breaking story, and no further details about the case have been provided at this time.