An account with Silvergate Capital may have played a key role in FTX’s collapse this November, according to a Dec. 20 report from the Wall Street Journal.
The newspaper cited three U.S. senators who said that an account at Silvergate “appears to be at the center” of FTX’s collapse. Those senators also said that Silvergate is reviewing transactions between FTX and Alameda Research.
Those senators went on to say that they “didn’t get too much in the way of real answers” when they asked the bank about specific customers and regulatory flags. Confidentiality rules allowed the bank to keep that information private.
Two Republican senators, John Kennedy and Roger Marshall, provided the information in today’s report. Democratic Senator Elizabeth Warren, well known for her harsh stance toward cryptocurrency, was also involved in disclosing the information.
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