SEC Silvergate Agrees to Pay 50 Million Civil Penalty for Securities Fraud Allegations

In a recent announcement, the U.S. Securities and Exchange Commission (SEC) has revealed that Silvergate, without admitting or denying the allegations, has agreed to pay a civil penalty of $50 million. The SEC further stated that it will be charging Silvergate and its former CFO with misleading investors about the expected securities sales losses following the collapse of the cryptocurrency exchange FTX. All parties involved, except for Silvergate’s former CFO, have agreed to settle the charges. According to court records filed on Monday, the SEC has filed a lawsuit against the bank in the Manhattan federal court, citing “securities fraud” as the cause. Multiple former executives of Silvergate have been named as defendants in the lawsuit. This article is for informational purposes only and does not constitute investment advice.