Several United States senators have reportedly sent a letter to Silvergate Capital, which is the parent company of Silvergate Bank, asking for explanations about the failure of cryptocurrency exchange FTX.

According to a report published on January 31 by Bloomberg, several United States senators, including Elizabeth Warren, Roger Marshall and John Kennedy, claimed that Silvergate did not answer all of their questions in response to a letter he was sent in December about the alleged role of the company in managing the funds of FTX users. Silvergate reportedly cited limits on the disclosure of “secret supervisory information,” which senators found unsatisfactory justification.

According to Bloomberg, the letter states that “both Congress and the public need and deserve the information necessary to understand Silvergate’s role in the fraudulent collapse of FTX.” This is especially true when you consider the fact that Silvergate turned to Federal Home Loan Bank in 2022 as its lender of last resort. “Both Congress and the public deserve the information necessary to understand Silvergate’s role in the fraudulent collapse of FTX.”

The names of Warren, Marshall and Kennedy were signed in a letter dated 2022 that gave Silvergate until December 19 to present explanations to Congress about its role in the FTX scandal. However, the senators reportedly said the company had omitted critical information that was essential to assessing Silvergate’s involvement in the alleged fraud committed by FTX. This included whether or not the company improperly handled the transfer of client assets from FTX to Alameda.

Following the liquidity crisis and FTX’s bankruptcy filing in November 2022, and prior to the arrest of former CEO Sam Bankman-Fried, Senators Sheldon Whitehouse and Senators Elizabeth Warren called on the Justice Department to investigate the collapse of FTX. cryptocurrency exchange and consider prosecuting certain individuals for their role in the incident. In the most recent letter, Silvergate was given a February 13 deadline to respond, during which time they were asked to comment on the company’s due diligence procedures.

After Republican lawmakers in the House of Representatives could not come to an agreement for days on choosing the next speaker, delaying committee assignments and legislation, members of Congress began organizing their 118th session. . This comes after House Republican lawmakers failed to pick the next speaker. In December, Senate and House lawmakers held hearings to investigate what led to FTX’s collapse, with leaders indicating at the time that the investigation would continue into 2023.