"He likes suing the SEC, when does he want to stop?"
The Securities and Exchange Commission (SEC) filed suit against Silvergate Bank for securities fraud following failure to meet certain legal requirements including provisions in the Bank Secrecy Act as well as anti-money laundering regulations.
In addition to filing actions against the crypto-friendly bank and its former executives for the events that led to its collapse in 2023, the SEC also flagged Silvergate Bank's activities as including non-compliance with crypto regulations.
Not only that, the SEC also revealed that Silvergate failed to detect a transfer worth $9 billion of FTX, where inspectors from the Bank Secrecy Act detected the bank's actions but claimed there was no risk at the time.
So here it can be seen that former Chief Executive Officer (CEO) of Silvergate Alan Lane, former Chief Operating Officer (COO) of Silvergate Kathleen Fraher and others were also sued for not monitoring suspicious activities.
Through the results of multiple Silvergate examinations by the Federal Reserve (Fed) and the Federal Reserve Bank of San Francisco (FRBSF), Lane and Fraher should have known that there were critical deficiencies in the Bank's BSA/AML compliance program.
Following the alleged violations and misrepresentations to customers, Silvergate will pay $63 million with $43 million in fines to the Fed and $20 million to state regulators.
Although Fraher and Lane agreed to pay fines and a five-year ban from acting as public company officers, former Chief Financial Officer (CFO) Antonio Martino vehemently denied the allegations.