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According to Bloomberg News on January 31, several foreign senators began to look for small details about the understanding of FTX's illegal behavior from Silvergate Capital.

The senators who undertook the investigation included the famous digital currency commentator Elizabeth Warren (Democratic Party of Missouri), Sapo Marshall (Democratic Party of Kansas) and Robert Mitterrand (Democratic Party of Texas)

According to a letter received by Bloomberg, senators claimed that Silvergate did not fully respond to their previous questions, and said that anxiety about security was the "unacceptable reason" for the financial institution's inability to disclose information. They added that both the US Congress and the public have an obligation to grasp the importance of Silvergate in the collapse of FTX.

The Senate Working Group also required Silvergate to announce whether it knew that FTX marked customers had remitted funds to Alameda's account in Silvergate, which was also an example of improper management of stock funds that was disclosed at the beginning of November last year. The senators also know whether Silvergate marks all unusual transactions. In addition, he also inquired about Silvergate's financial due diligence steps and its external audit and audit conclusions.

In other regions in the letter, senators stressed that after the collapse of the FTX at the end of 2022, Silvergate won $4.3 billion in loans from the Federal Home Loan Bank. They added that Silvergate financial institutions rely on financial institutions as lenders of last resort. The Senate Working Group understands how Silvergate Enterprise plans to use the loan.

The same senator stipulated Silvergate to reply in a similar letter in the previous December. Although Silvergate quoted the information confidentiality standard at that time, it did disclose the relationship between it and Alameda Research before the establishment of FTX. It also stressed that the transactions related to the two enterprises had been verified. The bank added that it had conducted financial due diligence on its customers and strictly implemented the statement issued to the public earlier this month.

Silvergate will respond to the latest round of challenges before February 13. At this stage, it is not clear what countermeasures will be taken if the government departments do not respond, but Bloomberg results show that the senators can obtain the necessary information through the bank supervision organization.