Last Updated on 2 hours by John Piper

US Senators Elizabeth Warren (US) and Sheldon Whitehouse (US) have asked the Justice Department for an investigation into the matter and to consider prosecuting anyone who might have been involved in the collapse of FTX.

Following the FTX collapse, several US senators including John Kennedy, Roger Marshall and Warren wrote to Silvergate Capital, the parent company of Silvergate Bank, to inquire about Silvergate’s involvement in the crisis.

A Bloomberg report on Jan. 31 stated that Silvergate did not answer all questions regarding a December letter concerning its alleged involvement in the handling of cryptocurrency exchanges’ user funds. Silvergate, according to reports, cited restrictions on disclosing confidential supervisory information — an explanation the senators found unacceptable.

Senators claim Silvergate has not answered all questions in a December letter. They call for full transparency about Silvergate’s involvement in the FTX collapse. This is especially important considering that Silvergate sought assistance from the Federal Home Loan Bank during this crisis. Silvergate has been given until February 13 by the senators to respond fully on its involvement in FTX and its due diligence.

These recent developments are part the ongoing congressional investigation into the FTX accident. The House of Representatives members and US senators held hearings in December to discuss the issue and consider legislative measures to prevent future similar incidents.

The congressional investigation will continue in 2023. Leadership suggests that lawmakers will focus on the fallout of the FTX crash in the coming months.

Coin Insider’s first article, US lawmakers ask Silvergate for answers about FTX link, appeared first here