The Federal Reserve is ending its enforcement action against defunct crypto-friendly bank Silvergate after fining the company millions of dollars.
In a new news release, the Federal Reserve says it is ending its enforcement action against the bank after it made good on its promise to liquidate its reserves and return all deposits to its customers.
“The Board’s enforcement action, in effect since May 2023, ensured that Silvergate would liquidate and wind down operations in a manner that protected the bank’s depositors.
Since then, Silvergate has completed its liquidation and wind-down plan, returned all deposits to its customers and is no longer operating as a bank.”
Earlier this year, the Fed announced it had fined Silvergate $43 million for flawed anti-money laundering protocols. The State of California’s Department of Financial Protection and Innovation also fined the bank $20 million.
According to the announcement, the US Securities and Exchange Commission (SEC) has also separately filed a fine against Silvergate.
In 2023, the California-based bank said it would cease operations and liquidate its $11 billion in assets following the multi-billion dollar collapse of the multi-billion dollar crypto exchange platform FTX in November 2022.
At the time, the bank said it would close due to “recent industry and regulatory developments.” The company’s SEN platform, which allowed institutions to exchange crypto and cash without the need for bank transfers, was also shut down.
Last November, FTX co-founder Sam Bankman-Fried was found guilty of mishandling customer money and defrauding investors and sentenced to decades behind bars.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on XFacebook and Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney
