Silvergate sinks 20% after Bloomberg report of DOJ criminal probe

The Justice Department’s fraud unit is looking into Silvergate Capital’s dealings with FTX and Alameda Research, Tom Schoenberg of Bloomberg report, citing people familiar with the matter. The criminal investigation is examining Silvergate’s hosting of accounts tied to Sam Bankman-Fried’s businesses, sources told Bloomberg. Silvergate hasn’t been accused of any wrongdoing and the inquiry, which is in its early phases, could end without charges being brought, Schoenberg adds. Shares of Silvergate Capital are down 21% to $16.44 in after-hours trading following the report.