Silvergate Bank's parent company, Silvergate Capital Corp., has agreed to a $63 million settlement with the SEC, Federal Reserve, and California regulators.

The settlement resolves allegations that the bank failed to maintain an effective anti-money laundering program and provided misleading information about its compliance efforts.

Former executives, including CEO Alan Lane and COO Kathleen Fraher, settled charges and face penalties, with Lane and Fraher banned from serving as officers or directors of public companies for five years.

The SEC's complaint highlighted deficiencies in monitoring suspicious transactions, including nearly $9 billion in transfers by bankrupt customer FTX (CRYPTO:FTT).

Silvergate, once a major player in crypto banking, voluntarily liquidated in March 2023 amid financial pressures, marking a significant event during the industry's "crypto winter."