PANews reported on July 2 that Silvergate Capital Corp., the parent company of crypto-friendly bank Silvergate Bank, has agreed to pay $63 million to reach a settlement with the U.S. SEC, the Federal Reserve and the California Department of Financial Protection and Innovation (DFPI). It is reported that Silvergate was fined $43 million by the Federal Reserve and $20 million by California regulators. The SEC also fined it $50 million, but it is not expected to increase the total fine. The settlement agreement still needs to be approved by the court.
According to previous news, the U.S. SEC sued the crypto bank Silvergate Capital in a federal court, accusing it of securities fraud. The SEC stated that after the collapse of FTX in 2022, Silvergate misled investors about its bank confidentiality system, anti-money laundering compliance program, and poor financial condition.
