Pressure on crypto bank Silvergate continues to increase

Silvergate played a central role in the bankruptcy case against FTX. Now the U.S. Justice Department is beginning an investigation.

Silvergate may soon face fraud charges over FTX and Alameda trades. The charges are still pending. According to information from Bloomberg prosecutors from the fraud division of the U.S. Department of Justice have already launched an initial investigation. The company's role in the FTX and Alameda Research case is going to be investigated.

Management of FTX and Alameda suspected for embezzlement

The action primarily targets Silvergate accounts associated with Sam Bankman-Fried's company. The management of FTX and Alameda are accused of embezzling billions of dollars in customer funds. Silvergate was among the lenders hardest hit by FTX's sudden bankruptcy. The bank reported a loss of one billion dollars in the last quarter and laid off about 40 percent of its staff.

A bipartisan group of U.S. senators called on the company earlier this week in an open open letter already calling on the company to release more information about the bankrupt crypto exchange FTX.