Executives Of Crypto-Friendly Bank Silvergate Step Down As Lawsuits, Liquidation Rages On
August 16 2023 - 12:00PM
NEWSBTC
In a recent turn of events, multiple executives of the embattled
California-based cryptocurrency bank Silvergate Capital have
announced that they will be stepping away from their roles at the
bank. The announcement comes as the bank remains deep in the throes
of liquidation while battling multiple lawsuits linked to its
demise. Top Executives Set to Step Down Silvergate Capital Corp
announced on Tuesday, August 16, the departure of some of its
primary employees working in executive leadership positions in its
company. The executives leaving include Chief Financial Officer,
Antonia Martino, Chief Legal Officer, John Bonino, and CEO, Alan
Lane. Related Reading: Another Crypto Millionaire Has Been
Found Dead Lane and the company’s Chief Legal Officer will be
departing on Tuesday, August 16, and according to a financial
filing delivered to the United States Securities and Exchange
Commission (SEC), Silvergate’s Chief Legal Officer is set to step
down on September 30. The executives’ decision to
depart from Silvergate follows the bank’s announcement in March to
shut down operations and liquidate its assets. Lane has served as
the CEO of Silver Capital Corp and Silvergate Bank since 2008 and
played a pivotal role in Silvergate’s development and growth.
In the absence of a CEO, Silvergate has replaced Lane with
Silvergate’s Chief Transition Officer, Kathleen M. Fraher. It has
also made Andrew Surry, Silvergate’s Accounting Officer, the
principal financial offer in the absence of Martino. Silvergate
stated in the filing to the SEC that it will provide each executive
severance benefits previously offered to employees laid off through
the bank’s liquidation process. Earlier this year in January,
Silvergate laid off over 180 employees, cutting its workforce by
40%. Again, in May, the bank laid off over 250 workers, leaving a
group of about 80 to oversee its liquidation and termination
process. The San-Diego-based bank said in a report that it
plans to significantly reduce the number of employees in its
company and manage its operations using a skeleton crew.
Stock price falls from $20 to $0.2 | Source: Silvergate Capital
Corporation on Tradingview.com Silvergate Enveloped in Lawsuits and
Liquidations In November 2022, Silvergate collapsed following the
FTX failure and embroilment in fraud. Silvergate, which served as
one of the two major banks for cryptocurrency companies in the
industry, decided to officially shut down all operations and start
a liquidation process. As a result, stocks plunged by 36% and
the bank suffered massive customer withdrawals. Toward the end of
Q3, Silvergate’s total deposits from crypto customers plummeted by
68%, declining to $3.8 billion from an astonishing $11.9
billion. Related Reading: US Prosecutors Accuse FTX’s Sam
Bankman-Fried Of Using $100M To Curry Political Favors According to
reports, FTX was one of Silvergate’s major customers and it was
revealed that Silvergate held about $1 billion in deposits from FTX
at the time of its failure. Silvergate’s affiliation with FTX has
caused severe financial damage to the bank’s reputation and put it
on the radar of the regulatory authorities in the United
States. Silvergate was also mentioned in multiple lawsuits
due to its association with the bankrupt FTX and allegations of
participation in FTX’s fraudulent activities. Featured image from
iStock, chart from Tradingview.com
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