Bloomberg: DOJ is investigating Silvergate's ties to FTX and Alameda

According to Bloomberg, citing people familiar with the matter, prosecutors in the U.S. Department of Justice’s anti-fraud unit have begun investigating Silvergate’s handling of accounts for FTX and Alameda Research, and the criminal investigation is reviewing accounts hosted by Silvergate related to SBF’s business. The fraud investigation focuses on FTX's potential criminal conduct of deposits, including user funds, into Alameda accounts, among other things. A Silvergate representative said Tuesday that the company has a comprehensive compliance and risk management program and has conducted significant due diligence on FTX and Alameda Research. Silvergate shares fell more than 20 percent in extended trading on Thursday, erasing a 29 percent gain during regular New York trading.