silvergate bank
Silvergate faces class-action lawsuit over FTX and Alameda dealings
A class-action lawsuit against Silvergate Bank, Silvergate Capital Corporation and Silvergate CEO Alan Lane was filed at the California Southern District Court concerning accounts held by embattled crypto companies FTX and Alameda Research. The suit aims to hold Silvergate accountable for its alleged roles in placing FTX user deposits into the bank accounts of Alameda, which caused panic within the crypto market, eventually leading to both firms declaring bankruptcy. The lawsuit was filed by the plaintiff Joewy Gonzalez on behalf of himself and others in the same situation. According to the suit, the plaintiff invested his savings in crypto through the FTX exchange as the platform promised investors that they were able to “store assets securely as they gained in value, cash them out ...
Silvergate Bank revenue soar in Q1 as institutional crypto trading activity falls
On Tuesday, Silvergate Bank, a crypto-fiat gateway network designed for financial institutions, announced its results for the first quarter of 2022. During this period, its revenue and net income grew by 93% and 94% year-over-year, respectively, to $59.9 million and $24.7 million. The company is most notable for its Silvergate Exchange Network, or SEN, which facilitates U.S. dollar and euro transfers between cryptocurrency exchanges and institutional investors. Despite its growth, however, institutional interest in crypto took a significant hit in Q1 due to the ongoing bear market. As told by Silvergate, the amount of SEN transfers it facilitated decreased from $167 billion in Q1 2021 to $142 billion in Q1 2022. Simultaneously, as part of broader industry trends, Bitcoin (BTC) and Ethereum...
MicroStrategy subsidiary will purchase Bitcoin after closing $205M crypto-collateralized loan
MacroStrategy, a subsidiary of business intelligence firm MicroStrategy, said it will purchase Bitcoin after obtaining a multimillion dollar loan from Silvergate Bank. In a Tuesday announcement, MicroStrategy said Silvergate issued a $205 million loan “secured by certain Bitcoin held in MacroStrategy’s collateral account.” The firm’s subsidiary MacroStrategy will be using the proceeds of the loan to purchase Bitcoin (BTC), pay fees and interest related to the loan and handle general corporate expenses. “The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in Bitcoin,” said MicroStrategy CEO Michael Saylor. “Using the capital from the loan, we’ve effectively turned our Bitcoin into productive collateral, which allows us to furthe...
