The SEC charged Silvergate Capital Corporation, its former CEO, and other executives with misleading investors about their compliance program effectiveness.
Silvergate allegedly failed to monitor over $1 trillion of transactions, including those related to FTX, revealing significant deficiencies in their BSA/AML compliance program.
The company and its former CFO are accused of understating losses and misrepresenting their capitalization status following FTX's collapse.
Silvergate and certain former executives have agreed to settlements, including monetary penalties and a ban on holding officer or director roles in public companies for five years.
The investigation and subsequent charges have led to a severe decline in Silvergate's stock value, impacting investors significantly.