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Author: nikhilesh de, jesse hamilton, coinDesk; compile: Deng Tong, Bitchain Vision Realm
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Silvergate Bank’s parent company reached a settlement with the US Securities and Exchange Commission, the Federal Reserve and the California Financial Protection and Innovation Department, accusing him of failing to maintain an appropriate anti -money laundering plan and misleading the effectiveness of the plan.
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SEC also accused Silvergate’s former executive.Former CEO Alan Lane and former chief operating officer Kathleen Fraher agreed to reconcile, and former chief financial officer Antonio Martino denied these allegations.
Silvergate Capital Corp. is a parent company of a cryptocurrency -friendly bank. The bank’s closure in 2023 has exacerbated the industry’s banking crisis. The company has agreed to pay $ 63 million to reconcile the US and California regulatory agencies in internal management of their internal management.Missing and charges to investors disclose bad information.
Silvergate Capital Corporation, the parent company of Cryptocurrency Friendship Silvergate Bank on Monday, complained on Monday. Public andShareholders say that it has an effective “Bank Secret Law”/anti -money laundering plan, but this is not the case.The Fed and California Financial Protection and Innovation (DFPI) also put forward similar allegations about the bank -based bank.
Silvergate, Lane, and Fraher agreed to reach a settlement. They neither acknowledged nor denied the allegations of the SEC, but they would pay a fine. The two agreed that they could not serve as executives or directors of other listed companies within five years.Silvergate also reached a settlement with the Fed and DFPI.
Silvergate’s fines include US $ 43 million in the Fed and $ 20 million in California regulatory agenciesThe latter also pointed out that the bank has defects in tracking internal transactions.SEC also fined $ 50 million, but it is expected to not increase the total fine.The reconciliation agreement must be approved by the court. In its press release, any fine that owed it may be offset by any amount paid by Silvergate to the bank regulatory agency.
Former chief financial officer Martino denied these allegations through a statement from his lawyer, saying that these allegations were related to the quarter of 2022 and were related to the decision of “judgment driver”.
The complaint stated: “Before November 2022, Lane and Fraher had repeatedly realized that the bank’s BSA/AML compliance plan had been seriously defective through their SCC.” “In addition, through the Fed, through the Federal Reserve Federal Reserve Bank (FRBSF)The results of multiple inspections performed by Silvergate, Lane and Fraher should know that the bank’s BSA/AML compliance plan is seriously defective. “
As part of the complaint,SEC accuses Silvergate’s failure to find the suspicious transfer of nearly $ 9 billion in major customers FTXFTX applied for bankruptcy in November 2022.
The complaint said: “Most of the time in 2021 and 2022, the bank did not perform appropriate automatic monitoring of its main product ‘Silvergate Exchange Network’ (SEN).” “SEN is a transfer between the bank’s encrypted asset customers.The key mechanism of funds is specially customized for attracting encrypted asset customers.
The lawsuit stated that Silvergate’s team received news from government reviewers, saying that it had insufficient effort, but it still claimed that there were no risk factors in the quarterly or annual reports (10-Q and 10-K).
The quarterly document in 2021 did “recognize” the bank faced “high risk” because of some encrypted customers, but the bank did not disclose its executives have realized the specific defects related to the “Bank Secret Law”.
Silvergate spokesman told Coindesk that reconciliation is part of the bank’s continued efforts.
“In early March 2023, Silvergate made a responsible decision to voluntarily liquidate without government assistance. As of November 2023, all deposits have been repaid to bank customers, Silvergate has stopped banking business shortly afterwards. Today it is announced that it is announced today.The reconciliation will promote Silvergate to abandon the bank license. This is part of the bank’s continued liquidation and successfully ending the Fed, DFPI, and SEC survey, “the spokesman said in an email statement.
Voluntary liquidation
Silvergate was the first choice for large -scale cryptocurrency companies, but voluntarily liquidated under the pressure of the industry’s huge reverse wind, which was the first of the so -called cryptocurrencies during the cold winter of cryptocurrencies.The other two -Silicon Valley Bank and SIGNATURE BANK -being seized and liquidated by the US authorities, while Silvergate closed down without government intervention or the federal government helped repay the storeders.
The closure of Silvergate and the other two institutions has caused several months of confusion in the U.S. banking industry. As the cryptocurrencies have fallen to the favor, digital asset companies have also sought unique financial partners.
Silvergate has quickly risen from a small community bank to the main financial partners in the digital asset industry, but its decline is faster.The bankruptcy is related to a securities document in March 2023. The document disclosed that the company will bet on the cryptocurrency industry in the future, accelerate the sale of securities to raise cash, and repay the prepaid payment of the San Federal Housing Loan Bank.But before that, the warning signal had appeared because the agency lost more than $ 8 billion in cryptocurrency client deposits in the last few months of 2022.
In a report of the Federal Reserve’s supervisor in October 2023, the Silvergate’s management was “invalid” and the regulators from the federal regulatory agency failed to adapt to the progress of the business.
