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\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

On Wednesday, Silvergate closed the day at $13.53; on Thursday, they closed at $5.75. A 57% loss in 2 days - what went wrong?<\/p>\n\n\n\n

Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The California Department of Financial Protection and Innovation closed<\/a> SVB Friday over liquidity challenges and placed it under the receivership of the Federal Deposit Insurance Corporation. FDIC created a new entity, the Deposit Insurance National Bank of Santa Clara, and transferred all the insured deposits due to the depositors \u2018no later than Monday, March 13.\u2019<\/p>\n","post_title":"Binance, Coinbase Suspend USDC Conversions After Circle Disclosed Exposure To Failed Silicon Valley Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-coinbase-suspend-usdc-conversions-after-circle-disclosed-exposure-to-failed-silicon-valley-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:20:05","post_modified_gmt":"2023-04-10 07:20:05","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10371","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10201,"post_author":"12","post_date":"2023-03-03 16:02:08","post_date_gmt":"2023-03-03 05:02:08","post_content":"\n

On Wednesday, Silvergate closed the day at $13.53; on Thursday, they closed at $5.75. A 57% loss in 2 days - what went wrong?<\/p>\n\n\n\n

Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Circle revealed<\/a> late Friday that it had $3.3 billion in cash backing USDC locked in SVB, representing part of the $40 billion stablecoin reserves. Dante Disparte, the firm\u2019s Chief Strategy Officer, added that a wire transfer initiated Thursday to withdraw the funds was still pending. SVB is one of the six banks Circle uses to manage 25% of the USDC reserves in cash.<\/p>\n\n\n\n

The California Department of Financial Protection and Innovation closed<\/a> SVB Friday over liquidity challenges and placed it under the receivership of the Federal Deposit Insurance Corporation. FDIC created a new entity, the Deposit Insurance National Bank of Santa Clara, and transferred all the insured deposits due to the depositors \u2018no later than Monday, March 13.\u2019<\/p>\n","post_title":"Binance, Coinbase Suspend USDC Conversions After Circle Disclosed Exposure To Failed Silicon Valley Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-coinbase-suspend-usdc-conversions-after-circle-disclosed-exposure-to-failed-silicon-valley-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:20:05","post_modified_gmt":"2023-04-10 07:20:05","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10371","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10201,"post_author":"12","post_date":"2023-03-03 16:02:08","post_date_gmt":"2023-03-03 05:02:08","post_content":"\n

On Wednesday, Silvergate closed the day at $13.53; on Thursday, they closed at $5.75. A 57% loss in 2 days - what went wrong?<\/p>\n\n\n\n

Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\u2018\u2018Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion,\u2019\u2019 <\/em>the exchange wrote<\/a>. \u2018\u2018This is a normal risk-management procedural step to take while we monitor the situation.\u2019\u2019<\/em><\/p>\n\n\n\n

Circle revealed<\/a> late Friday that it had $3.3 billion in cash backing USDC locked in SVB, representing part of the $40 billion stablecoin reserves. Dante Disparte, the firm\u2019s Chief Strategy Officer, added that a wire transfer initiated Thursday to withdraw the funds was still pending. SVB is one of the six banks Circle uses to manage 25% of the USDC reserves in cash.<\/p>\n\n\n\n

The California Department of Financial Protection and Innovation closed<\/a> SVB Friday over liquidity challenges and placed it under the receivership of the Federal Deposit Insurance Corporation. FDIC created a new entity, the Deposit Insurance National Bank of Santa Clara, and transferred all the insured deposits due to the depositors \u2018no later than Monday, March 13.\u2019<\/p>\n","post_title":"Binance, Coinbase Suspend USDC Conversions After Circle Disclosed Exposure To Failed Silicon Valley Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-coinbase-suspend-usdc-conversions-after-circle-disclosed-exposure-to-failed-silicon-valley-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:20:05","post_modified_gmt":"2023-04-10 07:20:05","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10371","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10201,"post_author":"12","post_date":"2023-03-03 16:02:08","post_date_gmt":"2023-03-03 05:02:08","post_content":"\n

On Wednesday, Silvergate closed the day at $13.53; on Thursday, they closed at $5.75. A 57% loss in 2 days - what went wrong?<\/p>\n\n\n\n

Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Blaming market conditions and not directly mentioning SVB, Binance suspended its auto conversion between USDC and BUSD.<\/p>\n\n\n\n

\u2018\u2018Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion,\u2019\u2019 <\/em>the exchange wrote<\/a>. \u2018\u2018This is a normal risk-management procedural step to take while we monitor the situation.\u2019\u2019<\/em><\/p>\n\n\n\n

Circle revealed<\/a> late Friday that it had $3.3 billion in cash backing USDC locked in SVB, representing part of the $40 billion stablecoin reserves. Dante Disparte, the firm\u2019s Chief Strategy Officer, added that a wire transfer initiated Thursday to withdraw the funds was still pending. SVB is one of the six banks Circle uses to manage 25% of the USDC reserves in cash.<\/p>\n\n\n\n

The California Department of Financial Protection and Innovation closed<\/a> SVB Friday over liquidity challenges and placed it under the receivership of the Federal Deposit Insurance Corporation. FDIC created a new entity, the Deposit Insurance National Bank of Santa Clara, and transferred all the insured deposits due to the depositors \u2018no later than Monday, March 13.\u2019<\/p>\n","post_title":"Binance, Coinbase Suspend USDC Conversions After Circle Disclosed Exposure To Failed Silicon Valley Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-coinbase-suspend-usdc-conversions-after-circle-disclosed-exposure-to-failed-silicon-valley-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:20:05","post_modified_gmt":"2023-04-10 07:20:05","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10371","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10201,"post_author":"12","post_date":"2023-03-03 16:02:08","post_date_gmt":"2023-03-03 05:02:08","post_content":"\n

On Wednesday, Silvergate closed the day at $13.53; on Thursday, they closed at $5.75. A 57% loss in 2 days - what went wrong?<\/p>\n\n\n\n

Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Binance Joins The Race To Break Ties With SVB<\/h2>\n\n\n\n

Blaming market conditions and not directly mentioning SVB, Binance suspended its auto conversion between USDC and BUSD.<\/p>\n\n\n\n

\u2018\u2018Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion,\u2019\u2019 <\/em>the exchange wrote<\/a>. \u2018\u2018This is a normal risk-management procedural step to take while we monitor the situation.\u2019\u2019<\/em><\/p>\n\n\n\n

Circle revealed<\/a> late Friday that it had $3.3 billion in cash backing USDC locked in SVB, representing part of the $40 billion stablecoin reserves. Dante Disparte, the firm\u2019s Chief Strategy Officer, added that a wire transfer initiated Thursday to withdraw the funds was still pending. SVB is one of the six banks Circle uses to manage 25% of the USDC reserves in cash.<\/p>\n\n\n\n

The California Department of Financial Protection and Innovation closed<\/a> SVB Friday over liquidity challenges and placed it under the receivership of the Federal Deposit Insurance Corporation. FDIC created a new entity, the Deposit Insurance National Bank of Santa Clara, and transferred all the insured deposits due to the depositors \u2018no later than Monday, March 13.\u2019<\/p>\n","post_title":"Binance, Coinbase Suspend USDC Conversions After Circle Disclosed Exposure To Failed Silicon Valley Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-coinbase-suspend-usdc-conversions-after-circle-disclosed-exposure-to-failed-silicon-valley-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:20:05","post_modified_gmt":"2023-04-10 07:20:05","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10371","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10201,"post_author":"12","post_date":"2023-03-03 16:02:08","post_date_gmt":"2023-03-03 05:02:08","post_content":"\n

On Wednesday, Silvergate closed the day at $13.53; on Thursday, they closed at $5.75. A 57% loss in 2 days - what went wrong?<\/p>\n\n\n\n

Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\nhttps:\/\/twitter.com\/thedistributed_\/status\/1634392319066791936?s=46&t=Ifskie--HBSR10iEQ2k9Pw\n<\/div><\/figure>\n\n\n\n

Binance Joins The Race To Break Ties With SVB<\/h2>\n\n\n\n

Blaming market conditions and not directly mentioning SVB, Binance suspended its auto conversion between USDC and BUSD.<\/p>\n\n\n\n

\u2018\u2018Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion,\u2019\u2019 <\/em>the exchange wrote<\/a>. \u2018\u2018This is a normal risk-management procedural step to take while we monitor the situation.\u2019\u2019<\/em><\/p>\n\n\n\n

Circle revealed<\/a> late Friday that it had $3.3 billion in cash backing USDC locked in SVB, representing part of the $40 billion stablecoin reserves. Dante Disparte, the firm\u2019s Chief Strategy Officer, added that a wire transfer initiated Thursday to withdraw the funds was still pending. SVB is one of the six banks Circle uses to manage 25% of the USDC reserves in cash.<\/p>\n\n\n\n

The California Department of Financial Protection and Innovation closed<\/a> SVB Friday over liquidity challenges and placed it under the receivership of the Federal Deposit Insurance Corporation. FDIC created a new entity, the Deposit Insurance National Bank of Santa Clara, and transferred all the insured deposits due to the depositors \u2018no later than Monday, March 13.\u2019<\/p>\n","post_title":"Binance, Coinbase Suspend USDC Conversions After Circle Disclosed Exposure To Failed Silicon Valley Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-coinbase-suspend-usdc-conversions-after-circle-disclosed-exposure-to-failed-silicon-valley-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:20:05","post_modified_gmt":"2023-04-10 07:20:05","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10371","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10201,"post_author":"12","post_date":"2023-03-03 16:02:08","post_date_gmt":"2023-03-03 05:02:08","post_content":"\n

On Wednesday, Silvergate closed the day at $13.53; on Thursday, they closed at $5.75. A 57% loss in 2 days - what went wrong?<\/p>\n\n\n\n

Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

USDC, or USD Coin, is the second largest stablecoin in the market behind Tether, pegged to the US dollar to act as a medium of exchange in the crypto market. Following the news, some investors have pulled their funds from the stablecoin, destabilizing the peg, which was at $0.8913 at press time, per CoinMarketCap. USDC was originally launched by Centre, a joint venture between Coinbase and Circle.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/thedistributed_\/status\/1634392319066791936?s=46&t=Ifskie--HBSR10iEQ2k9Pw\n<\/div><\/figure>\n\n\n\n

Binance Joins The Race To Break Ties With SVB<\/h2>\n\n\n\n

Blaming market conditions and not directly mentioning SVB, Binance suspended its auto conversion between USDC and BUSD.<\/p>\n\n\n\n

\u2018\u2018Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion,\u2019\u2019 <\/em>the exchange wrote<\/a>. \u2018\u2018This is a normal risk-management procedural step to take while we monitor the situation.\u2019\u2019<\/em><\/p>\n\n\n\n

Circle revealed<\/a> late Friday that it had $3.3 billion in cash backing USDC locked in SVB, representing part of the $40 billion stablecoin reserves. Dante Disparte, the firm\u2019s Chief Strategy Officer, added that a wire transfer initiated Thursday to withdraw the funds was still pending. SVB is one of the six banks Circle uses to manage 25% of the USDC reserves in cash.<\/p>\n\n\n\n

The California Department of Financial Protection and Innovation closed<\/a> SVB Friday over liquidity challenges and placed it under the receivership of the Federal Deposit Insurance Corporation. FDIC created a new entity, the Deposit Insurance National Bank of Santa Clara, and transferred all the insured deposits due to the depositors \u2018no later than Monday, March 13.\u2019<\/p>\n","post_title":"Binance, Coinbase Suspend USDC Conversions After Circle Disclosed Exposure To Failed Silicon Valley Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-coinbase-suspend-usdc-conversions-after-circle-disclosed-exposure-to-failed-silicon-valley-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:20:05","post_modified_gmt":"2023-04-10 07:20:05","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10371","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10201,"post_author":"12","post_date":"2023-03-03 16:02:08","post_date_gmt":"2023-03-03 05:02:08","post_content":"\n

On Wednesday, Silvergate closed the day at $13.53; on Thursday, they closed at $5.75. A 57% loss in 2 days - what went wrong?<\/p>\n\n\n\n

Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Coinbase posted<\/a> on Twitter Friday saying: \u2018\u2018we are temporarily pausing USDC:USD conversions over the weekend while banks are closed. During the heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours. When banks open on Monday, we plan to recommence conversions.\u2019\u2019<\/em><\/p>\n\n\n\n

USDC, or USD Coin, is the second largest stablecoin in the market behind Tether, pegged to the US dollar to act as a medium of exchange in the crypto market. Following the news, some investors have pulled their funds from the stablecoin, destabilizing the peg, which was at $0.8913 at press time, per CoinMarketCap. USDC was originally launched by Centre, a joint venture between Coinbase and Circle.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/thedistributed_\/status\/1634392319066791936?s=46&t=Ifskie--HBSR10iEQ2k9Pw\n<\/div><\/figure>\n\n\n\n

Binance Joins The Race To Break Ties With SVB<\/h2>\n\n\n\n

Blaming market conditions and not directly mentioning SVB, Binance suspended its auto conversion between USDC and BUSD.<\/p>\n\n\n\n

\u2018\u2018Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion,\u2019\u2019 <\/em>the exchange wrote<\/a>. \u2018\u2018This is a normal risk-management procedural step to take while we monitor the situation.\u2019\u2019<\/em><\/p>\n\n\n\n

Circle revealed<\/a> late Friday that it had $3.3 billion in cash backing USDC locked in SVB, representing part of the $40 billion stablecoin reserves. Dante Disparte, the firm\u2019s Chief Strategy Officer, added that a wire transfer initiated Thursday to withdraw the funds was still pending. SVB is one of the six banks Circle uses to manage 25% of the USDC reserves in cash.<\/p>\n\n\n\n

The California Department of Financial Protection and Innovation closed<\/a> SVB Friday over liquidity challenges and placed it under the receivership of the Federal Deposit Insurance Corporation. FDIC created a new entity, the Deposit Insurance National Bank of Santa Clara, and transferred all the insured deposits due to the depositors \u2018no later than Monday, March 13.\u2019<\/p>\n","post_title":"Binance, Coinbase Suspend USDC Conversions After Circle Disclosed Exposure To Failed Silicon Valley Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-coinbase-suspend-usdc-conversions-after-circle-disclosed-exposure-to-failed-silicon-valley-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:20:05","post_modified_gmt":"2023-04-10 07:20:05","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10371","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10201,"post_author":"12","post_date":"2023-03-03 16:02:08","post_date_gmt":"2023-03-03 05:02:08","post_content":"\n

On Wednesday, Silvergate closed the day at $13.53; on Thursday, they closed at $5.75. A 57% loss in 2 days - what went wrong?<\/p>\n\n\n\n

Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

As the industry comes to terms with the demise of Silicon Valley Bank, top cryptocurrency exchanges, Binance and Coinbase, have announced that they are suspending USDC conversions after the stablecoin issuer, Circle, disclosed exposure to the failed financial institution.<\/p>\n\n\n\n

Coinbase posted<\/a> on Twitter Friday saying: \u2018\u2018we are temporarily pausing USDC:USD conversions over the weekend while banks are closed. During the heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours. When banks open on Monday, we plan to recommence conversions.\u2019\u2019<\/em><\/p>\n\n\n\n

USDC, or USD Coin, is the second largest stablecoin in the market behind Tether, pegged to the US dollar to act as a medium of exchange in the crypto market. Following the news, some investors have pulled their funds from the stablecoin, destabilizing the peg, which was at $0.8913 at press time, per CoinMarketCap. USDC was originally launched by Centre, a joint venture between Coinbase and Circle.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/thedistributed_\/status\/1634392319066791936?s=46&t=Ifskie--HBSR10iEQ2k9Pw\n<\/div><\/figure>\n\n\n\n

Binance Joins The Race To Break Ties With SVB<\/h2>\n\n\n\n

Blaming market conditions and not directly mentioning SVB, Binance suspended its auto conversion between USDC and BUSD.<\/p>\n\n\n\n

\u2018\u2018Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion,\u2019\u2019 <\/em>the exchange wrote<\/a>. \u2018\u2018This is a normal risk-management procedural step to take while we monitor the situation.\u2019\u2019<\/em><\/p>\n\n\n\n

Circle revealed<\/a> late Friday that it had $3.3 billion in cash backing USDC locked in SVB, representing part of the $40 billion stablecoin reserves. Dante Disparte, the firm\u2019s Chief Strategy Officer, added that a wire transfer initiated Thursday to withdraw the funds was still pending. SVB is one of the six banks Circle uses to manage 25% of the USDC reserves in cash.<\/p>\n\n\n\n

The California Department of Financial Protection and Innovation closed<\/a> SVB Friday over liquidity challenges and placed it under the receivership of the Federal Deposit Insurance Corporation. FDIC created a new entity, the Deposit Insurance National Bank of Santa Clara, and transferred all the insured deposits due to the depositors \u2018no later than Monday, March 13.\u2019<\/p>\n","post_title":"Binance, Coinbase Suspend USDC Conversions After Circle Disclosed Exposure To Failed Silicon Valley Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-coinbase-suspend-usdc-conversions-after-circle-disclosed-exposure-to-failed-silicon-valley-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:20:05","post_modified_gmt":"2023-04-10 07:20:05","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10371","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10201,"post_author":"12","post_date":"2023-03-03 16:02:08","post_date_gmt":"2023-03-03 05:02:08","post_content":"\n

On Wednesday, Silvergate closed the day at $13.53; on Thursday, they closed at $5.75. A 57% loss in 2 days - what went wrong?<\/p>\n\n\n\n

Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 11 12 13 14

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
  • More than $3 billion backing USDC stablecoin is stuck in SVB, which collapsed on Friday.<\/li>\n<\/ul>\n\n\n\n

    As the industry comes to terms with the demise of Silicon Valley Bank, top cryptocurrency exchanges, Binance and Coinbase, have announced that they are suspending USDC conversions after the stablecoin issuer, Circle, disclosed exposure to the failed financial institution.<\/p>\n\n\n\n

    Coinbase posted<\/a> on Twitter Friday saying: \u2018\u2018we are temporarily pausing USDC:USD conversions over the weekend while banks are closed. During the heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours. When banks open on Monday, we plan to recommence conversions.\u2019\u2019<\/em><\/p>\n\n\n\n

    USDC, or USD Coin, is the second largest stablecoin in the market behind Tether, pegged to the US dollar to act as a medium of exchange in the crypto market. Following the news, some investors have pulled their funds from the stablecoin, destabilizing the peg, which was at $0.8913 at press time, per CoinMarketCap. USDC was originally launched by Centre, a joint venture between Coinbase and Circle.<\/p>\n\n\n\n

    \nhttps:\/\/twitter.com\/thedistributed_\/status\/1634392319066791936?s=46&t=Ifskie--HBSR10iEQ2k9Pw\n<\/div><\/figure>\n\n\n\n

    Binance Joins The Race To Break Ties With SVB<\/h2>\n\n\n\n

    Blaming market conditions and not directly mentioning SVB, Binance suspended its auto conversion between USDC and BUSD.<\/p>\n\n\n\n

    \u2018\u2018Binance has temporarily suspended auto-conversion of USDC to BUSD due to current market conditions, specifically related to high inflows & the increasing burden to support the conversion,\u2019\u2019 <\/em>the exchange wrote<\/a>. \u2018\u2018This is a normal risk-management procedural step to take while we monitor the situation.\u2019\u2019<\/em><\/p>\n\n\n\n

    Circle revealed<\/a> late Friday that it had $3.3 billion in cash backing USDC locked in SVB, representing part of the $40 billion stablecoin reserves. Dante Disparte, the firm\u2019s Chief Strategy Officer, added that a wire transfer initiated Thursday to withdraw the funds was still pending. SVB is one of the six banks Circle uses to manage 25% of the USDC reserves in cash.<\/p>\n\n\n\n

    The California Department of Financial Protection and Innovation closed<\/a> SVB Friday over liquidity challenges and placed it under the receivership of the Federal Deposit Insurance Corporation. FDIC created a new entity, the Deposit Insurance National Bank of Santa Clara, and transferred all the insured deposits due to the depositors \u2018no later than Monday, March 13.\u2019<\/p>\n","post_title":"Binance, Coinbase Suspend USDC Conversions After Circle Disclosed Exposure To Failed Silicon Valley Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-coinbase-suspend-usdc-conversions-after-circle-disclosed-exposure-to-failed-silicon-valley-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:20:05","post_modified_gmt":"2023-04-10 07:20:05","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10371","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10201,"post_author":"12","post_date":"2023-03-03 16:02:08","post_date_gmt":"2023-03-03 05:02:08","post_content":"\n

    On Wednesday, Silvergate closed the day at $13.53; on Thursday, they closed at $5.75. A 57% loss in 2 days - what went wrong?<\/p>\n\n\n\n

    Investor confidence was initially lost after the bank announced<\/a> it would delay filing its Form 10-K for the previous fiscal year by its March 16th deadline. Within the last year, crypto markets had been under pressure; along with this, the subsequent collapse of FTX<\/a> brought many firms to their knees, many firms which had relations with Silvergate. Silvergate cut ties with Alameda Research, FTXs trading arm, in 2018 before the exchange launched.<\/p>\n\n\n\n

    Just before the report's delay, Silvergate announced that it would be \u201cevaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements.\u201d<\/em><\/p>\n\n\n\n

    To add, Silvergate is currently being probed by authorities<\/a> for dealings with FTX. There have been no wrongdoings brought to light as of yet.<\/p>\n\n\n\n

    Silvergate saw over US$8B being withdrawn from their bank in Q4 following FTX's collapse, with a $1B loss incurred in the same quarter. At the beginning of January, the bank had also laid off over 40% of its workers.<\/p>\n\n\n\n

    Crypto Firms End Relations With Silvergate<\/h2>\n\n\n\n

    In the wake of the news surrounding Silvergate, various firms are getting out before a collapse; in the wake of FTX's collapse there cannot be enough precautions.<\/p>\n\n\n\n

    Silvergate has lost various partners in the past 48 hours. This includes Coinbase, Circle, CryptoCom, Paxos, Galaxy Digital, Bitstamp, and CBOE. Tether had announced that they had no ties or exposure to the bank.<\/p>\n\n\n\n

    \nhttps:\/\/twitter.com\/TheDistributed_\/status\/1631292798770065408\n<\/div><\/figure>\n","post_title":"Silvergate Drops Over 50% In A Trading Day; Sees Its Biggest Clients Halting Business With The Bank","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"silvergate-drops-over-50-in-a-trading-day-sees-its-biggest-clients-halting-business-with-the-bank","to_ping":"","pinged":"","post_modified":"2023-04-10 17:30:38","post_modified_gmt":"2023-04-10 07:30:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10201","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9742,"post_author":"13","post_date":"2023-02-05 16:25:24","post_date_gmt":"2023-02-05 05:25:24","post_content":"\n

    Cryptocurrency-focused bank Silvergate is facing investigation from the US Justice Department for suspicious dealings with FTX and its affiliated Alameda Research. The investigators want to know how the California-based bank handled the accounts associated with Sam Bankman-Fried, the former CEO and co-founder of the troubled exchange, currently facing fraud charges<\/a>.<\/p>\n\n\n\n

    According to sources<\/a> who shared information with Bloomberg on anonymity, Silvegate has not been accused of any wrongdoing yet, and the charges may not even materialize. However, DOJ is not the only authority going after the lender, and its troubles may not end anytime soon.<\/p>\n\n\n\n

    US Lawmakers Are Also Questioning Silvergate's Conduct<\/h2>\n\n\n\n

    Still in Washington D.C., a group of senators led by Democrat Elizabeth Warren has brought similar concerns against the lender. The legislators want to know whether Silvergate knew about the alleged mismanagement of funds by FTX, terming an earlier response on the same as \u2018\u2018evasive and incomplete.\u2019\u2019 The letter<\/a> \u2013 seen by Bloomberg News \u2013 reached Silvergate on Monday.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

    In defense, the NYSE-listed bank said it complied with the necessary due diligence processes on all the accounts owned by Alameda (reportedly opened in 2018,) and those by FTX, before onboarding them, and afterward.<\/p>\n\n\n\n

    The headwinds facing the 35-year-old financial institution have had a huge impact on the price of its stock, besides driving it to lay off some of its staff. Its shares dropped 20% during the extended trading hours on Thursday. Even before the probe, Silvergate was already in the red, having reported a $1 billion loss in the last quarter and retrenching about half its employees.<\/p>\n\n\n\n

    It remains to be seen how Silvergate would shrug off the claims, considering the latter recently declared that Alameda\u2019s bank accounts were used in moving FTX funds. Besides, the bank is also defending itself against a possible class action lawsuit pitting it with investors who claim it neglected sound internal controls.<\/p>\n","post_title":"Crypto-Friendly Bank Silvergate Faces Probe For Dealings With Bankrupt FTX","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"crypto-friendly-bank-silvergate-faces-probe-for-dealings-with-bankrupt-ftx","to_ping":"","pinged":"","post_modified":"2023-04-10 17:37:22","post_modified_gmt":"2023-04-10 07:37:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9742","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

    1 … 11 12 13 14

    Most Read

    Subscribe To Our Newsletter

    By subscribing, you agree with our privacy and terms.

    Follow The Distributed

    Twitter Instagram Youtube LinkedIn Facebook RSS
    ADVERTISEMENT
    \n