Silvergate pressed by senators after 'evasive' responses on FTX - Bloomberg Law

  • In US
  • 2023-01-31 14:43:29Z
  • By Reuters

(Reuters) -U.S. senators have asked cryptocurrency-focused bank Silvergate Capital Corp if it knew about bankrupt exchange FTX's alleged misuse of customer funds after the lawmakers found the company's earlier responses "evasive", Bloomberg Law reported on Tuesday.

The questions were asked in a letter sent to the bank by senators including Democrat Elizabeth Warren and Republicans Roger Marshall and John Kennedy, who questioned Silvergate about its ties to FTX, the report said.

They said Silvergate in December had declined to fully answer related questions, citing restrictions on disclosing "confidential supervisory information", the report added.

Silvergate did not immediately respond to a Reuters request for comment.

The La Jolla, California-based company is under pressure after FTX's bankruptcy shook the crypto market. Earlier this month, Silvergate slashed its headcount by 40% and reported a net loss of $1 billion for the fourth quarter.

(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel)


Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: US