TechFlow news — Silvergate Capital Corp. has agreed to pay $63 million to settle allegations by U.S. and California regulators over internal management failures and disclosing false information to investors.
Silvergate, along with former CEO Alan Lane and former COO Kathleen Fraher, agreed to pay penalties and accept a five-year ban from serving as executives at publicly traded companies. The $63 million in fines includes $43 million to the Federal Reserve and $20 million to California. The SEC also imposed a $50 million penalty, which may be offset by other settlements.
Earlier reports indicated the SEC accused Silvergate of failing to detect nearly $9 billion in suspicious transfers involving its major client FTX, and of inadequate monitoring of its core product, the Silvergate Exchange Network (SEN). A Silvergate spokesperson said the settlements are part of the bank's orderly liquidation and mark the successful conclusion of all investigations.
