(Recasts, changes sourcing)
Jan 31 (Reuters) - Three U.S. senators have asked
cryptocurrency-focused bank Silvergate Capital Corp for
details of its risk management practices and its dealings with
bankrupt exchange FTX, according to a letter released on
Tuesday.
Democrat Elizabeth Warren and Republicans Roger Marshall and
John Kennedy said they were "disappointed" by the bank's
"evasive and incomplete response" to a previous request for
information the lawmakers sent to the company in December.
Silvergate did not respond to a Reuters request for comment.
The senators have now asked Silvergate for a collection of
information to be submitted by Feb. 13, including if the bank
had identified any wrongdoing by FTX and affiliate Alameda.
The bank's response to the previous letter had some new
information which showed that its risk management and due
diligence processes "failed miserably", the lawmakers added.
La Jolla, California-based Silvergate is already under
pressure after FTX's bankruptcy shook the crypto market. Earlier
this month, the company slashed its headcount by 40% and
reported a net loss of $1 billion for the fourth quarter.
Contents of the letter were first reported by Bloomberg Law.
(Reporting by Niket Nishant in Bengaluru; Editing by Maju
Samuel and Devika Syamnath)
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