Silvergate Bank didn’t adequately monitor $1 trillion in crypto transactions, SEC says

That's literally always been the point of crypto. These headlines are sort of the equivalent of well duh or no s*** sherlock. I've always been rather bemused by the main stream credibility crypto was given due to the grifter hype around it. It was always a bananas concept ripe for abuse.

This is the best summary I could come up with:

Silvergate said it had an effective anti-money laundering (AML) program tailored specifically to crypto but actually didn’t adequately monitor “approximately $1 trillion” in transactions, the complaint says.

Days after the crypto exchange declared bankruptcy, the bank run that would ultimately kill Silvergate had begun.

Lane, aware of social media chatter about Silvergate, asked the bank to review its relationship with FTX.

He denies any wrongdoing and intends to challenge the SEC’s claims in court,” said Lurie, who was also directly quoted in a statement Katz said was his.

At the heart of the SEC’s allegations is the network Silvergate ran to allow crypto customers to transact at all hours, called SEN.

Though Silvergate said SEN was safe, the SEC says the network wasn’t being automatically monitored for suspicious transactions for “at least 15 months prior to November 2022.”

The original article contains 545 words, the summary contains 138 words. Saved 75%. I'm a bot and I'm open source!

USD50M fine for a one trillion f-up? This is not even a slap on the wrist.