Silvergate’s Fraher breaks silence on settlement with Gensler’s SEC
Former Silvergate executive Kate Fraher settled with the SEC to avoid litigation, criticizing regulatory pressure and the now-rescinded gag rule.Summary
Former Silvergate Chief Risk Officer Kate Fraher has publicly discussed her 2024 settlement with the U.S. Securities and Exchange Commission for the first time. Fraher agreed to a $250,000 penalty and a five-year ban on serving as an executive after being accused of misleading investors regarding anti-money laundering controls. She maintains that no agency proved these controls failed, opting to settle only to avoid a prolonged legal battle and the personal impact of regulatory pressure. Fraher also argued that Silvergate’s closure was driven by broader administrative hostility toward the crypto industry rather than the FTX collapse, and she praised the SEC for rescinding its "gag rule," which she deemed unconstitutional.
(Source：Cointelegraph)