The Securities and Exchange Commission (SEC) and Department of Justice (DOJ) are apparently looking into the now-defunct Silicon Valley Bank, despite the fact that regulators aided the bank’s depositors on Sunday (SVB).
The stock purchases made by SVB officials right before the bank fell will be examined by both of the external investigations.
The stock purchases made by SVB officials right before the bank fell will be examined by both of the external investigations.
The Wall Street Journal reports that the investigations by the agencies are still in the early stages and may not result in accusations or indictments.
Such inquiries are frequently conducted after the failure of both financial institutions and crypto-native businesses. Once FTX froze withdrawals in November, the SEC and CFTC moved quickly to open investigations into the company before filing accusations against it in December.
Days before the bank failed on Friday, SVB CEO Greg Becker sold $3.6 million worth of stock and bought options worth $1.3 million, per a regulatory filing.
But, in accordance with SEC regulations prohibiting insider trading, Becker had already prearranged the sale as early as January 26.
Such inquiries are frequently conducted after the failure of both financial institutions and crypto-native businesses. Once FTX froze withdrawals in November, the SEC and CFTC moved quickly to open investigations into the company before filing accusations against it in December.
Days before the bank failed on Friday, SVB CEO Greg Becker sold $3.6 million worth of stock and bought options worth $1.3 million, per a regulatory filing.
But, in accordance with SEC regulations prohibiting insider trading, Becker had already prearranged the sale as early as January 26.
Following a company revelation on Wednesday that it had experienced a $1.8 billion loss after selling its $21 billion bond portfolio to reorganize its balance sheet, the CEO in question advised the bank’s depositors to “remain calm” on Thursday.
Notwithstanding this, depositors tried to withdraw $42 billion from the company late on Thursday. Even Peter Thiel, the co-founder of Paypal, urged investors to take action.
The firm’s senior management has been completely replaced, and its depositor-focused bailout did not include the shareholders.
Concerned that these exchanges may have issued or sold unregistered securities, the SEC has conducted investigations into a number of cryptocurrency companies.