Both the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have reportedly ruled out the now-collapsed Silicon Valley Bank (SVB) after depositors at the bank were bailed out by regulators on Sunday. are investigating.
A separate study examines stock sales by SVB executives shortly before SVB’s bankruptcy.
- Officials say their investigation is still preliminary and may not necessarily lead to allegations or prosecutions. wall street journal.
- Similar investigations are common following failures of financial institutions and crypto-native companies. start investigation He joined FTX shortly after the company froze withdrawals in November, before filing charges against the company in December.
- SVB CEO Greg Becker sold The bank had $3.6 million worth of days on hand and had $1.3 million worth of options taken before it failed Friday, according to regulatory filings.
- However, Becker had pre-arranged the sale on January 26, in line with the SEC’s insider trading rules.
- The same executive told bank depositors to “calm down” on Thursday after Wednesday. announcement The company said it realized a loss of $1.8 billion after selling a $21 billion bond portfolio to rebuild its balance sheet.
- Nevertheless, depositors flew towards the exit. withdrawal $42 billion from the company late Thursday. Paypal co-founder Peter Thiel’s Founder’s Fund called on investors to do just that.
- The company’s shareholders are not included With the depositor-focused bailout, senior management was completely sacked.
- The SEC has investigated various crypto companies, including Kraken and binance Concerns that such exchanges have issued or sold unregistered securities
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