Silvergate Bank Financial News

The San Diego federal court has ruled that Silvergate Bank must face a class-action lawsuit filed by FTX users which alleges that the bank aided fraud at the exchange and its associated trading firm, Alameda Research.

Silvergate Bank has been charged by the Securities and Exchange Commission (SEC) for misleading investors about the effectiveness of its Anti-Money Laundering (AML) compliance program.

Crypto-friendly Silvergate Capital has announced that it has fully repaid all remaining deposit liabilities. 

An accountant for the US Securities and Exchange Commission says crypto exchange Binance, CEO Changpeng Zhao and related entities moved “large amounts of money” from 2019 up to this year.

Binance executive was the main operator for five bank accounts belonging to the giant cryptocurrency exchange's purportedly independent U.S. affiliate, including an account that held American customers' funds, bank records show. U.S. lender Silvergate Bank authorized the executive, Guangying Chen, a close associate of Binance CEO Changpeng Zhao, to operate the accounts in 2019 and 2020, according to records from those years. This allowed Chen and her deputies to move funds held in the bank accounts. Employees at the affiliate, Binance.US, had to ask Chen's team to process payments, even to cover the firm's payroll, company messages show. The new findings offer further detail into how Binance exercised tight control over Binance.US, despite both firms maintaining that they have always operated independently. The previously unreported bank records and messages show that Binance's management over the U.S. business's finances extended across its bank accounts at Silvergate and detail how this secret access was granted. Binance.US has denied that Binance ever operated its bank accounts. Its head of legal, Krishna Juvvadi, told in April that employees of Binance.US's operator, BAM Trading, had «exclusive control» since its founding in 2019.

Crypto-friendly Signature Bank “significantly’ cut back on digital asset deposits in the wake of increased volatility and regulators' concerns at the end of last year, said the former chairman and co-founder of the now-shuttered bank. 

Silvergate Capital, the parent company of now-defunct crypto-friendly bank Silvergate Bank, has announced another major layoff that would impact 230 employees. 

Kraken will suspend automated clearinghouse (ACH) deposits and withdrawals beginning March 27 due to the recent closure of its banking partner Silvergate Bank. 

Silvergate Capital Corp disclosed plans to wind down operations and voluntarily liquidate, as the aftermath of FTX's implosion last year reverberates through the industry. Analysts said a complete closure of the crypto lender could take one or two years depending on how quickly outstanding loans are repaid and assets are disposed of. Silvergate's latest move adds to a list of high-profile collapses among crypto market players since last year. The company's shares plunged 37% to $3.11, a day after hitting a record low and have lost 64% since March 1 when the company flagged a going concern risk.