Call us now:
The SEC has announced charges against the former CEO, CRO and CFO with misleading investors about the strength of its Bank Secrecy Act/Anti-Money Laundering (BSA/AML) program and monitoring of crypto customers.
The SEC’s complaint alleges that Silvergate and the CFO misrepresented the company’s bleak financial condition during a liquidity crisis and bank run following FTX’s collapse. The complaint alleges that Silvergate and Martino, in an earnings release and earnings call, understated Silvergate’s losses from expected security sales and misrepresented that it remained well-capitalized as of December 31, 2022. In March 2023, Silvergate announced it would wind down its banking operations, and its stock eventually plummeted to near $0.
‘Silvergate paid $20mn to the California Department of Financial Protection and Innovation and $43mn to the Fed, and a separate $50mn settlement with the SEC will be offset by those payments, according to DFPI. The CEO settled with the SEC for $1mn and CRO $250,000.’
A demonstration that the SEC will focus on the role of corporate directors in their reporting of their companies performance to markets.
@Thaddeus Dziekanowski Brian D. McCarthy
Veritas GRC Silvergate Bank U.S. Securities and Exchange Commission
#crypto #compliance
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