​​ US DOJ investigates Silvergate over FTX collapse amid part | Goodcrypto Announcment [old]

​​ US DOJ investigates Silvergate over FTX collapse amid partnership termination by major crypto companies

According to reports, crypto bank Silvergate is facing an investigation from the United States Department of Justice over its alleged involvement in the FTX collapse.

Companies such as Paxos, Circle, Bitstamp, and Mike Novogratz's Galaxy Digital have announced that they will no longer accept or initiate transfers with Silvergate after news that Coinbase would no longer take or initiate payments with the crypto bank.

Paxos said it had already “discontinued all [Silvergate Exchange Network] transfers and wires” to the firm’s account, while Circle is “in the process of unwinding certain services” with Silvergate, and Bitstamp said its bank transfer services would be provided by “other global banking partners.”

This news follows Silvergate's announcement that it would postpone the filing of its annual 10-K financial report, which has caused concern that the bank may be on the brink of bankruptcy.

MicroStrategy has confirmed that its BTC collateral is not held by Silvergate, stating that it will not need to pay back a loan from Silvergate until Q1 2025 and that a bankruptcy or insolvency event would not "accelerate" the loan repayment.

Paolo Ardoino, the CTO of Tether, has also confirmed that Tether is not exposed to Silvergate. The collapse of Silvergate could have high costs for the rest of the cryptocurrency industry.

A bankruptcy or insolvency event could significantly impact the rest of the cryptocurrency industry.

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