Silvergate’s Fraher breaks silence on settlement with Gensler’s SEC

Former Silvergate executive Kate Fraher said the rule that prevented her from sharing her side of the story was unconstitutional. It was finally lifted by the SEC this week.

The former chief risk officer of Silvergate revealed she made the decision to settle with the US securities regulator in 2024 to avoid a “multi-year battle” in court, where she was accused of misleading investors about anti-money laundering rules and how the bank monitored crypto customers.

In her first public comments about her settlement with the SEC on Wednesday, Kate Fraher claimed that no financial agency proved that Silvergate’s anti-money laundering controls had failed, and that she only opted to settle to “move forward.” 

Fraher had agreed to a civil penalty of $250,000 and was banned from serving as a company executive or board director for five years.

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