Justice Department probes Silvergate’s relationship with FTX: Bloomberg

Quick Take

  • FTX’s bank is under the early stages of a federal criminal investigation, Bloomberg reported. 

The Justice Department’s fraud department has begun probing Silvergate’s handling of accounts for Sam Bankman-Fried’s firms, Bloomberg reported, citing unnamed people familiar with the matter.

The fraud probe is focused on potential criminal wrongdoing in allowing FTX’s deposits – including user funds – into Alameda’s accounts, according to the report. 

The porous relationship between the jumble of firms tied to Sam Bankman-Fried came to light amid ongoing bankruptcy proceedings. Silvergate's role as bank to the failed crypto empire has placed it under increased scrutiny.