Case: Silvergate Capital Corporation
Venue: Southern District of New York
Class Period: 11/9/2021 - 11/17/2022
Lead Plainitff Deadline: 2/6/2023
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NEW YORK, NY – December 9, 2022 – Kaplan Fox & Kilsheimer LLP ( is investigating claims on behalf of investors of Silvergate Capital Corp. (“Silvergate” or “Company”) (NYSE: SI). Click here to join investigation.

If you acquired Silvergate securities between November 9, 2021 and November 17, 2022, inclusive (the “Class Period”) and would like to discuss this case or our investigation, please contact us by emailing This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by calling (646) 315-9003 or our toll free number 1 (800) 290-1952.   

If you are a member of the proposed Class, you may move the court no later than February 6, 2023 to serve as a lead plaintiff for the purported class.  If you have losses, we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.

According to the complaint, on November 15, 2022, Marcus Aurelius Research tweeted that “Recently subpoenaed Silvergate bank records reveal $425 million in transfers from $SI crypto bank accounts to South American money launderers. Affidavit from investigation into crypto crime ring linked to smugglers/drug traffickers.”

On November 15, 2022, Silvergate’s shares fell $6.13 per share, more than 17%, to close at $29.36 per share on unusually heavy trading volume.

Then, on November 17, 2022, The Bear Cave newsletter released and article about several companies with potential exposure to recently collapsed cryptocurrency exchange FTX, including Silvergate.  The article highlighted the connection linking Silvergate to a money laundering operation that transferred $425 million off cryptocurrency trading platforms.

On November 17, 2022, Silvergate shares fell $3.44 per share, about 11%, to close at $27.90 per share.  Silvergate’s shares declined by $3 per share the next trading day, or 10.7%, to close at $24.90 per share on November 18, 2022.  

The complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements and failed to disclose to investors that (1) the Company’s platform lacked sufficient controls and procedures to detect instances of money laundering, (2) Silvergate’s customers engaged in money laundering in amounts exceeding $425 million, and (3) as a result of the foregoing, the Company was reasonably likely to receive regulatory scrutiny and face damages, including penalties and reputational harm, among other things. 

Post-Class Period and in the wake of the collapse of the FTX cryptocurrency exchange, a December 5, 2022 letter sent by several U.S. Senators to Silvergate’s CEO, as reported by Bloomberg, states “[Silvergate’s] involvement in the transfer of FTX customer funds to Alameda reveals what appears to be an egregious failure of your bank’s responsibility to monitor for and report suspicious activity carried out by its clients.”

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If you have any questions about this investigation, please contact: 

Pamela A. Mayer 
850 Third Avenue, 14th Floor
New York, New York 10022
(212) 687-1980
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Laurence D. King
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax:  (415) 772-4707
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