by Bloomberg, the law enforcement agency’s fraud unit is investigating its ties to the crypto exchange and its investment arm – Alameda Research.
The agency is reportedly probing the bank’s hosting of accounts linked to FTX and Alameda. However, the agency has not accused the bank of misconduct, and the investigation may end with any charges pressed against the firm. Nonetheless, the investigation has resulted in its shares tumbling by over 28% in after-hours trading.
Moreover, the news comes days after BlackRock, a prominent investment management firm, disclosed a stake of 7.2% in the bank. The firm has over 228,000 shares of Silvergate as of December 31, 2022, an increase from the previous year’s 187,000 shares.of the once-leading crypto exchange led to a massive bank run on Silvergate, with reports stating that the bank had to sell its assets to keep up with the withdrawals.to nearly $8.1 billion, forcing the firm to sell its assets at a loss.