Silvergate will pay $63 million to reach a settlement with the U.S. SEC, Federal Reserve and California regulators

The parent company of crypto-friendly bank Silvergate Bank, Silvergate Capital Corp., has agreed to pay $63 million in a settlement with the U.S. SEC, Federal Reserve and California's Department of Financial Protection and Innovation (DFPI). The regulators accused it of failing to maintain an appropriate anti-money laundering program and making misleading disclosures about the effectiveness of that program. They also charged Silvergate and its former CFO with misleading investors about expected securities sales losses following the collapse of cryptocurrency exchange FTX. Silvergate was fined $43 million by the Federal Reserve, $20 million by California regulators who also noted deficiencies in the bank's tracking of internal transactions. The SEC imposed a fine of $50 million on it but did not expect to increase the total amount of fines. The SEC stated that any fines owed by Silvergate could be offset by amounts paid to banking regulators, and court approval is still required for the settlement agreement.