The US Securities and Exchange Commission (SEC) has filed a lawsuit against Silvergate Capital Corporation, the parent company of crypto-friendly Silvergate Bank. The bank allegedly failed to comply with the Bank Secrecy Act/anti-money laundering regulations as it claimed to the public and shareholders. 😱

Former CEO Alan Lane, former COO Kathleen Fraher and former COO Antonio Martino are also among the defendants. The SEC claims the bank did not conduct adequate suspicious activity monitoring. 🧐

The SEC alleges that Silvergate failed to detect approximately $9 billion in suspicious transfers by FTX, which filed for bankruptcy in November 2022. 😮

Silvergate's team received notice from Bank Secrecy Act auditors that its efforts were inadequate, but it still claimed there were no risk factors in its quarterly or annual reporting. 🤔

Silvergate, which had been the bank of choice for crypto businesses, voluntarily closed down under huge pressure from the industry, becoming the first of three tech-related lenders to close during the then-current "crypto winter". 😢

What do you think this story means to you? I'm waiting for your comments! 🚀#DeFi#Web3