Gushiken Yona
Ryan Salame, the former co-CEO of the now-bankrupt cryptocurrency exchange FTX, has publicly accused Silvergate Bank, a now-liquidated institution that specialized in serving crypto clients, of playing a key role in FTX’s downfall.
Salame Alleges Silvergate Facilitated Improper FTX Fund Flows
In a post on X (formerly Twitter), Salame alleged that Silvergate executives advised Alameda Research, FTX’s sister trading firm, to utilize its accounts for over-the-counter (OTC) USD trading on behalf of FTX customers until the exchange could secure its own account.
“I would also like a Silvergate executive to go on record stating how they advised Alameda to use its accounts for FTX customers OTC USD trading until they could grant FTX its own account,” Salame wrote. “Silvergate advised 100% of Alameda’s and subsequently North Dimension’s banking activity.”
Silvergate’s Role in FTX Collapse Under Scrutiny
Salame’s accusation came amid ongoing scrutiny of Silvergate’s role in the FTX saga. The bank, which specialized in serving cryptocurrency clients, faced intense regulatory pressure and ultimately collapsed earlier this year.
Salame’s post added fuel to the fire, suggesting that Silvergate’s actions may have facilitated the improper commingling of funds between FTX and Alameda, a key factor in the exchange’s demise.
Salame’s Credibility Questioned
Salame’s credibility, however, has been called into question in recent weeks. Last week, federal judge Lewis Kaplan threatened sanctions against him for lying during his guilty plea hearing in a separate case related to campaign finance and money-transmitting crimes.
Salame admitted to falsely claiming that prosecutors had not made promises to him in exchange for his plea, specifically regarding dropping a criminal probe of his romantic partner.
Allegations Carry Weight Despite Salame’s Legal Troubles
Despite the cloud of controversy surrounding Salame, his allegations against Silvergate cannot be easily dismissed. His position as a former high-ranking executive at FTX gives him unique insight into the inner workings of the exchange and its relationship with Silvergate.
The implications of Salame’s accusations are significant. If proven true, they could further tarnish Silvergate’s reputation and potentially expose the bank to legal liabilities. Moreover, they could raise broader questions about the regulatory oversight of banks that cater to the cryptocurrency industry.
As the fallout from FTX’s collapse continues to unfold, Salame’s allegations against Silvergate add another layer of complexity to an already intricate saga. The accusations are likely to be closely scrutinized by investigators and regulators as they seek to unravel the full extent of FTX’s downfall and hold those responsible accountable.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
