According to TechFlow, Silvergate Capital Corp. agreed to pay $63 million to settle charges from U.S. and California regulators for internal management errors and disclosing false information to investors.
Silvergate, former CEO Alan Lane and former COO Kathleen Fraher agreed to pay fines and accept a five-year ban from serving as an executive at another public company. The fines include $43 million from the Federal Reserve and $20 million from the state of California. The SEC also imposed a $50 million fine, but it may be offset by other penalties.
Earlier news, the SEC accused Silvergate of failing to detect nearly $9 billion in suspicious transfers from its main client FTX and failing to properly monitor its core product, the Silvergate Exchange Network. A Silvergate spokesperson said the settlements were part of the bank’s orderly liquidation and successfully concluded various investigations.
