1 year ago
Silvergate CEO Alan Lane wrote a Dec. 5 nationalist letter to reassure stakeholders that the steadfast employs the champion owed diligence process and has a robust hazard absorption control.
Silvergate addresses FTX, Alameda exposure
Lane wrote that the fiscal instauration conducted “significant owed diligence connected FTX and its related entities, including Alameda Research, some during the onboarding process and done ongoing monitoring.”
According to Lane, Silvergate carried retired payments directed to Alameda Research based connected instructions from the sender and accordant with the champion manufacture practice. The CEO noted that if the steadfast “detects enactment that is unexpected oregon perchance concerning successful immoderate account, we behaviour an probe and, erstwhile required, confidentially record a suspicious enactment study successful accordance with national regulation.”
Concerns were raised antecedently that FTX’s implosion impacted Silvergate. However, Lane revealed that the firm’s vulnerability to the bankrupt crypto speech was constricted to little than 10% of its full deposits arsenic of Sept. 30.
Reports besides revealed that the fiscal work supplier was exposed to bankrupt crypto lender BlockFi. According to the report, little than $20 cardinal of its full deposits was from the lender.
Silvergate has a resilient equilibrium expanse and ample liquidity
The CEO besides addressed concerns astir its liquidity, saying its customers’ deposits are safely held.
Apart from that, Lane revealed that the firm’s full concern securities portfolio could beryllium pledged for borrowings astatine different fiscal institutions to fulfill its customers’ withdrawal requests.
Lane said the firm’s concern was designed to accommodate deposit inflows and outflows nether antithetic marketplace conditions.
The CEO added that abbreviated sellers and different opportunists are spreading the existent speculation and misinformation astir its concern to capitalize connected the marketplace uncertainty. According to him, each of the firm’s customers person continued to entree their U.S. dollar deposits, and its Silvergate Exchange Network (SEN) has continued to operate.
He concluded that:
“Silvergate operates successful accordance with the Bank Secrecy Act and the USA PATRIOT Act.”
The station Silvergate addresses FTX’s exposure, reassure stakeholders appeared archetypal connected CryptoSlate.
English (US) 