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What happened to Silvergate?
Silvergate Bank was a US bank that served many crypto companies. In March 2023 it announced it would wind down its banking operations. In 2024 the SEC found its parent company had misled investors about how it monitored crypto customers, including FTX, and it agreed to a $50 million penalty.
What it means for you
The banks that move dollars in and out of crypto are a link people rarely see. When one closes, deposits and withdrawals at the exchanges that used it can slow or stop.
How it works
In March 2023 Silvergate announced it would wind down its banking operations, and its stock fell to near zero. On July 1, 2024 the SEC charged Silvergate Capital, its former CEO and its former Chief Risk Officer with misleading investors about its anti-money-laundering program and its monitoring of crypto customers, including FTX. The SEC says the bank's automated monitoring system failed to monitor more than $1 trillion of transactions on its payments platform, the Silvergate Exchange Network. Silvergate agreed to a $50 million penalty; the former CEO and former Chief Risk Officer agreed to penalties and five-year officer-and-director bars, and a separate charge against the former CFO was not settled.
Source: SEC: Silvergate Capital and former CEO charged with misleading investors (2024-82) · checked 5 October 2026
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