TechFlow news, according to Bloomberg citing sources familiar with the matter, the U.S. Department of Justice's anti-fraud division has begun investigating cryptocurrency bank Silvergate's handling of FTX's accounts. The fraud probe reportedly focuses on potential criminal conduct involving allowing FTX to deposit customer funds and other deposits into Alameda's accounts. Silvergate has long provided such a conduit for FTX's U.S. dollar deposits.
Additionally, following the disclosure of the Justice Department's fraud investigation, Silvergate's stock dropped 21% during trading after the opening on February 2. Earlier, during regular trading hours, the company's shares surged 38% after State Street disclosed it held a 9.3% stake in the crypto-friendly bank Silvergate.
Previously reported, on January 31, a bipartisan group of U.S. senators urged cryptocurrency bank Silvergate Capital (SI) to provide more details about its knowledge of FTX's alleged misuse of customer funds.Original link
