US prosecutors launch criminal probe into Silvergate's FTX, Alameda dealings

US prosecutors launch criminal probe into Silvergate's FTX, Alameda dealings

The Founder and former CEO of crypto currency exchange FTX Sam Bankman-Fried leaves the Magistrate Court building in Nassau, Bahamas December 19, 2022. REUTERS/Marco Bello

Federal prosecutors in Washington are probing Silvergate Capital Corp and its dealings with bankrupt crypto exchange FTX and Alameda Research, according to a source familiar with the investigation.

Prosecutors in the Justice Department’s fraud section are involved in the criminal probe into the crypto-focused bank’s dealings, the source said. Scrutiny of Silvergate has been mounting in the wake of FTX’s collapse. Earlier this week, a bipartisan group of US senators sent a letter to Silvergate asking for details of its risk management practices and its dealings with FTX.

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