According to information on December 20th, Silvergate Capital’s account may have played a key role in this November’s FTX debacle. report From The Wall Street Journal.
The paper cited three US senators who said Silvergate accounts “appear to be at the center” of the FTX collapse. These senators also said Silvergate is considering a deal between his FTX and Alameda Research.
These senators went on to say they “didn’t get many real answers” when they asked banks about specific customers and regulatory flags. I was able to.
Two Republican Senators, John Kennedy and Roger Marshall, provided information in today’s report. Democratic Senator Elizabeth Warren, known for her tough stance on cryptocurrencies, was also involved in the disclosure.
Silvergate’s FTX-related findings may have implications. Hearings in progress FTX related. However, the news may also affect public perception of Silvergate itself, which has been criticized for being dependent on a failed exchange. In November, Silvergate acknowledged that he had exposure to FTX, but at the same time tried to minimize that fact by stating that that exposure was less than 10% of user deposits. .
On Dec. 6, Silvergate tried to further reassure customers by saying it had conducted due diligence on FTX and Alameda. The bank further defended itself and its risk-monitoring system on Monday, Dec. 19, according to The Wall Street Journal.
These guarantees do not appear to comfort investors who have filed multiple class action lawsuits against the company.
one class action lawsuit It was filed today with Silvergate on behalf of investors who have purchased the company’s securities. In the lawsuit, he noted in a Nov. 17 newsletter that explained Silvergate’s exposure to FTX, which appeared to have caused the value of Silvergate’s stock to drop.
The same lawsuit also cites an unrelated issue: Silvergate’s alleged role in handling money laundering originating from South American smugglers and drug traffickers. dropped.
Silvergate is known for providing a wide range of services to blockchain and fintech companies. It claims to serve over 750 cryptocurrency exchanges and affiliates.
