E Point Perfect

La Jolla’s Silvergate Capital Cites ‘Limited’ Exposure to Crypto Exchange Bankruptcy


Bitcoin illustration
Image via Pixabay

La Jolla-based Silvergate Capital, a bank holding company focused on cryptocurrency, told investors Friday its exposure to a major exchange bankruptcy was limited to deposits.

Crypto exchange FTX filed for U.S. bankruptcy protection on Friday and its founder Sam Bankman-Fried resigned as chief executive in the biggest blowup in the crypto industry.

The distressed crypto trading platform had struggled to raise money to stave off collapse as traders rushed to withdraw $6 billion in just 72 hours and rival exchange Binance abandoned a proposed rescue deal.

Silvergate Chief Executive Officer Alan Lane said FTX represented “less than 10%” of his company’s $11.9 billion in deposits.

“To be clear, our relationship with FTX is limited to deposits,” said Lane, adding that “Silvergate’s platform was built to support our clients during times of market volatility and transformation.”

The company doesn’t hold deposits in Bitcoin and other cryptocurrencies but helps investors trade and move digital currency among exchanges.

“As a federally regulated banking institution that is well capitalized, we maintain a strong balance sheet with ample liquidity to support our customers’ needs,” Lane said.

Silvergate shares closed up 5% Friday on the New York Stock Exchange, but ended the week down 34%.


Source link

Related posts

Gas Station Robber Wielding Knife Flees with Cash and Cigarettes in Encinitas

County Reports 473 New COVID Cases, 4 Deaths As Thousands Step Up for Bivalent Boosters

Navy, Air Force, Coast Guard Practice Mine Clearing Off San Clemente Island

Grid Operator Extends Flex Alert Hours from 3 p.m. to 10 p.m. to Avoid Blackouts

One Killed in Traffic Crash on Mission Valley Freeway Connector

Opinion: California Lawmakers Must Protect Small Businesses from Bogus ADA Lawsuits