– Three U.S. senators have requested cryptocurrency-focused financial institution Silvergate Capital Corp for particulars of its threat administration practices and its dealings with bankrupt change FTX, in accordance with a letter launched on Tuesday.
Democrat Elizabeth Warren and Republicans Roger Marshall and John Kennedy mentioned they have been “upset” by the financial institution’s “evasive and incomplete response” to a earlier request for info the lawmakers despatched to the corporate in December.
Silvergate didn't reply to a Reuters request for remark.
The senators have now requested Silvergate for a set of data to be submitted by Feb. 13, together with if the financial institution had recognized any wrongdoing by FTX and affiliate Alameda.
The financial institution’s response to the earlier letter had some new info which confirmed that its threat administration and due diligence processes “failed miserably”, the lawmakers added.
La Jolla, California-based Silvergate is already below stress after FTX‘s chapter shook the crypto market. Earlier this month, the corporate slashed its headcount by 40% and reported a web lack of $1 billion for the fourth quarter.
Contents of the letter have been first reported by Bloomberg Legislation.
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