Consumer complaint received 2023-01-20
Company: SILVERGATE CAPITAL CORPORATION
State: OR
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Money was not available when promised

Complaint:
I believe that Silvergate Bank is holding cash funds that belong to me, without communicating in any way when they will return my funds. These funds represent my emergency living expenses. I am a customer of XXXX. XXXX has a XXXX  account at Silvergate for XXXX $ holdings of their customers. I withdrew from my cash account balance via the XXXX XXXX XXXXia an ACH transactions of approx. XXXX to be sent to my bank account at XXXX XXXX  following the XXXX guidelines, instructions and terms of service on XX/XX/2022, 2 days prior to XXXX declaring bankruptcy on XX/XX/XXXX ). 

At the time, XXXX openly stated on their official website and XXXX page that withdrawals were fully operational and processing. Per my account on both the XXXX website and app, the funds were removed from my account. In addition, I received confirmation on the website, the app, and via XXXX  support directly that my ACHs ( multiple ) were being sent. I have yet to receive my funds. The XXXX terms of service clearly state that my XXXX XXXX  account balances would be held for my benefit at XXXXXXXX XXXX XXXX Your XXXX XXXXccount allows you to hold and transfer US dollars which are held by XXXX for your benefit at XXXX banksTo the extent you hold XXXX XXXX balances ( and such balances are not held in stablecoins or other investments ), those XXXX balances are held in customer omnibus accounts at XXXX banks ( Silvergate Bankfor customers of the XXXX XXXX XXXX XXXXXX/XX/XXXX ) When allowing XXXX to open and maintain an XXXX  account at Silvergate, XXXX order to ensure proper compliance with banking regulations, would Silvergate not have to have in place some form of proper level of oversight and transaction controls? Does Silvergate not have at least some awareness and assurance that XXXX is following proper risk and compliance protocols in regards to the XXXX account? 

Does Silvergate require XXXX to supply account reconciliation reports, customer ID program reports and transaction monitoring reports to SIlvergate on a regular basis? Assuming they do ( if not, why not? ), wouldnt or shouldnt Silvergate be aware of XXXX  customer withdrawals from their XXXX XXXX  account at Silvergate? Wouldnt or shouldnt it be the responsibility of Silvergate to assure that customer ACH requests shown as being processed bXXXX XXXX, with the funds debited from their Silvergate XXXX cash accounts ( at least peXXXX XXXX XXXX, actually matches the fund withdrawal requests sent to SIlvergate, as well as the funds actually withdrawn from the account? 

According to XXXX, my account was debited and these ACHs were outside of their control, unable to be canceled, and were being sent by XXXX. This was 2 days before XXXX declared bankruptcy and while withdrawals were fully open and processing. Given the monitoring and oversight that either was being done, or should have been done, shouldnt Silvergate, at the bare minimum, at least have been aware of these XXXX withdrawals over the [ NUMBER ] day period while XXXX withdrawals were open and functioning, prior to bankruptcy? If they were not aware, shouldnt they have been? XXXX Silvergate bear, at the very least, some responsibility for the return of these funds to me, their rightful owner per all of the above and the terms of the Silvergate XXXX  account the funds were held in?

Company response to consumer: Closed with explanation