Crypto Bank Silvergate Investigated for Links to FTX Empire Collapse and Crypto Firms Terminate Relationship with Bank

Crypto bank Silvergate is under investigation by the US Department of Justice fraud unit for hosting accounts linked to the collapsed FTX empire. The bank is accused of aiding and abetting a fraudulent scheme orchestrated by FTX CEO Sam Bankman-Fried, who has been charged with wire and securities fraud and money laundering. The bank is also accused of failing to detect money laundering in excess of $425 million. As a result, major firms, including Coinbase, Paxos, Circle, and Galaxy Digital, have terminated their relationships with Silvergate. This could have a marginally negative impact on the crypto market, as the bank struggles with losses, staff layoffs, and the need for loans to prevent a liquidity crisis and bank run.