Federal Reserve Ends Enforcement Action Against Silvergate Bank
The Federal Reserve has concluded its enforcement action against Silvergate, a now-defunct bank known for its crypto-friendly stance, after imposing a multimillion-dollar fine.
In a recent press release, the Federal Reserve announced it is ending the enforcement action following Silvergate’s successful liquidation of its reserves and repayment of all customer deposits.
“The Board’s enforcement action, in place since May 2023, required Silvergate to liquidate and wind down its operations in a way that protected its depositors. Since then, Silvergate has completed its liquidation and wind-down plan, repaid all customer deposits, and ceased functioning as a bank.”
Earlier this year, Silvergate was fined $43 million by the Fed for inadequate anti-money laundering measures. The California Department of Financial Protection and Innovation also fined the bank $20 million.
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Additionally, the U.S. Securities and Exchange Commission (SEC) imposed a separate penalty on Silvergate.
In 2023, Silvergate announced it would cease operations and liquidate its $11 billion in assets following the collapse of the FTX crypto exchange platform in November 2022.
The bank cited “recent industry and regulatory developments” as reasons for shutting down, including its SEN platform, which allowed institutions to exchange crypto and cash without bank wires.
FTX co-founder Sam Bankman-Fried was found guilty last November of misusing customer funds and defrauding investors, resulting in a lengthy prison sentence.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
