Three us senators ask Silvergate for details

Three U.S. senators have asked Silvergate Capital Corp for details on its risk management practices and its dealings with bankrupt exchange FTX, according to a letter released on Tuesday.

Democrat Elizabeth Warren and Republicans Roger Marshall and John Kennedy said they were disappointed by the bank's evasive and incomplete response to a request for information that lawmakers sent to the company in December.

The senators asked Silvergate for a collection of information that must be submitted by February 13, including if the bank had identified any wrongdoing by FTX and affiliate Alameda.

The bank's response to the letter showed that its risk management and due diligence processes failed miserably, according to the new information in the bank's response to the previous letter.

Silvergate, based in La Jolla, California, is under pressure because of FTX's bankruptcy. The company reported a net loss of $1 billion for the fourth quarter on the back of a 40 per cent reduction in its headcount earlier this month.

The letter's contents were first reported by Bloomberg Law.