According to Foresight News, citing people familiar with the matter, Bloomberg reported that prosecutors from the U.S. Department of Justice’s Anti-Fraud Division have begun investigating Silvergate’s handling of accounts for FTX and Alameda Research, and the criminal investigation is examining accounts hosted by Silvergate related to SBF business. The fraud investigation focused on potentially criminal conduct by FTX including deposits, including user funds, into Alameda accounts.​

A Silvergate representative said Tuesday that the company has comprehensive compliance and risk management programs and has conducted significant due diligence on FTX and Alameda Research. Silvergate shares fell more than 20% in extended trading Thursday, erasing a 29% gain from the regular session in New York.