WASHINGTON, July 1 (Reuters) - The owner of defunct

crypto lender Silvergate Bank has agreed to pay $63 million to

end probes by the U.S. Securities and Exchange Commission,

Federal Reserve and California regulator into its compliance

processes, the company and regulators said on Monday.

The regulators said they found deficiencies in Silvergate's

monitoring of transactions in compliance with anti-money

laundering laws.

The bank's former chief executive Alan Lane and former Chief

Risk Officer Kathleen Fraher also agreed to settle SEC charges

that they made misleading statements about the bank's compliance

program and monitoring of crypto customers.

The SEC also charged former Chief Financial Officer, Antonio

Martino with misleading investors about the company's losses

from expected securities sales following FTX's collapse. He is

fighting the charges, the SEC said.

"Antonio Martino categorically denies the U.S. Securities

and Exchange Commission's allegations against him, and Mr.

Martino will vigorously defend himself in court where he is

confident the SEC's over-reach and mischaracterization of the

facts will be clear," Martino's lawyer said in a statement.

The enforcement actions are the first brought against

entities and individuals in relation to a crop of bank failures

in 2023.

La Jolla, California-based Silvergate, which primarily

served clients in the cryptocurrency industry, said in March

2023 that it would wind down operations and voluntarily

liquidate after it was hit with losses following the collapse of

crypto exchange FTX and a broader downturn in digital assets.

Similar to collapsed lender Silicon Valley Bank, Silvergate

sold debt securities at a loss as depositors withdrew more than

$8 billion.

A spokesperson for Silvergate Capital ( SICP ) said all deposits had

been repaid to banking customers. "The settlements announced

today, which will facilitate the surrender of Silvergate's bank

charter, are part of the Bank's continued orderly wind down and

successfully conclude investigations by the Federal Reserve,

DFPI, and SEC."

Silvergate Capital ( SICP ) will pay $20 million to the DFPI, $43

million to the Fed, while penalties of $50 million assessed by

the SEC will be offset by Silvergate's payments to the Fed and

DFPI.