Silvergate's Kate Fraher Breaks Silence on $250K SEC Settlement, 5-Year Executive Ban

Kate Fraher, Silvergate's former chief risk officer, revealed on Wednesday that she settled with the SEC in 2024 to avoid a "multi-year battle" over allegations of misleading investors about anti-money laundering controls. She received a $250,000 civil penalty and was banned from serving as a company executive or board director for five years.

Fraher stated that no financial agency proved Silvergate's AML controls had failed and that she chose to settle to "move forward." She added that the SEC's gag rule made it impossible to publicly defend herself until the agency rescinded the policy on Monday. Fraher claimed the bank's decision to wind down in 2023 stemmed from "regulatory pressure" rather than FTX contagion or deposit runs.