SEC Takes Action Against Silvergate Bank
SEC Charges Silvergate Bank with Misleading Statements and Lack of Controls
According to a complaint filed by the Securities and Exchange Commission (SEC), Silvergate Bank would have incurred in misleading statements and the lack of application of controls for the monitoring of operations, resulting in more than USD $1 billion in capital movements without proper controls.
SEC Takes Action Against Silvergate Bank
- The SEC took action against Silvergate Bank
- Silvergate and several executives made false statements, and endorsed capital movements without proper supervision
- The agency also reported that it reached agreements with Silvergate and two of the directors named
- The proceedings against Silvergate add to the growing list of actions taken by the SEC against crypto companies
Charges Against Silvergate Bank
According to a document submitted by the SEC, Silvergate Bank would have incurred violations applicable to the Banking Secrecy Act as well as in violations of the Anti-Money Laundering Regulations. They accuse the entity of not implementing the necessary measures to supervise the operations of its users, allowing the transfer of funds without any type of control to avoid illegal acts.
Reaching an Agreement with the SEC
In addition to demand, the SEC revealed that it had reached agreements and compensations with several of the parties named in the published document. Silvergate, Lane, and Fraher would have reached an agreement with the SEC, although they neither admitted nor denied the charges brought by the agency. This means that Lane and Fraher will pay USD $1 million and USD $250,000, respectively, while Silvergate will pay $50 million in fines. The aforementioned executives agreed to permanent injunctions.
SEC’s Actions
The announcement by the SEC joins the long list of procedures and compliance measures that it has undertaken in recent times, especially highlighting the fight in courts against Coinbase and Binance for violations of federal securities laws. Beyond this, the SEC has shipped Wells Notices to Kraken, Uniswap, Consensys, and Robin Hood, in which he accused them of trading in unregistered securities.
WARNING
This is an informative article. The publication does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be appropriate for retail investors, as the total amount invested could be lost. Check the laws of your country before investing.
