Bloomberg Tax
Feb. 2, 2023, 10:03 PM

Silvergate Faces DOJ Fraud Probe Over FTX, Alameda Dealings (1)

Tom Schoenberg
Tom Schoenberg
Bloomberg News

US prosecutors in the Justice Department’s fraud unit are looking into Silvergate Capital Corp.’s dealings with fallen crypto giants FTX and Alameda Research, according to people familiar with the matter.

The criminal investigation is examining Silvergate’s hosting of accounts tied to Sam Bankman-Fried’s businesses, said the people who asked not to be identified to discuss the confidential probe. The review adds to mounting scrutiny of the La Jolla, California-based bank, which has also drawn the attention of lawmakers.

The crypto-friendly bank hasn’t been accused of any wrongdoing and the inquiry, which is in its early phases, could end ...