1 year ago
Silvergate CEO Alan Lane has denied allegations of nepotism earlier U.S. senators, according to a report from The Wall Street Journal connected Dec. 21.
Last month, connected Nov.7, Silvergate Capital announced 2 changes to enforcement positions wrong the company. Unfortunately, it neglected to notation astatine that clip that Lane’s son-in-law, Tyler Pearson, would beryllium affected by the firm shuffle.
Pearson formerly served arsenic Chief Risk Officer astatine Silvergate but was reassigned to the lawman equivalent of that relation during the shuffle. He present reports to Kate Fraher, who took connected the relation of Chief Risk Officer aft antecedently serving arsenic the company’s COO.
Lane denied that the alteration was owed to immoderate show issues connected Pearson’s part. Instead, helium called the determination “a important absorption restructuring unrelated to occupation performance,” adding that unit changes “extended good beyond Mr. Pearson.”
Silvergate is often accused of nepotism successful the short-seller community, arsenic the institution employs astatine slightest 2 different contiguous household members of Alan Lane. His son, Chris Lane, is employed by Silvergate successful a pb concern systems role. Alan Lane’s son-in-law, Jason Brenier, besides serves arsenic the company’s Director of Trading.
Three U.S. senators — including noted crypto professional Elizabeth Warren — archetypal called for answers from Silvergate connected these and different matters connected Dec. 5.
The senators initially imposed today’s question successful a letter that day: “Why did Silvergate regenerate Tyler Pearson arsenic Chief Risk Officer?”
The question was tangentially related to the senators’ much important concerns astir Silvergate’s narration with the bankrupt crypto speech FTX. Silvergate carried retired its enforcement shuffle the aforesaid play FTX began to collapse, seemingly starring the senators to fishy that it was related to the company’s FTX connections.
Yesterday, senators asserted that an relationship astatine Silvergate was astatine the halfway of FTX’s illness based connected its conversations with the erstwhile company. However, those conversations person produced fewer different factual details connected what whitethorn person occurred.
The station Silvergate denies nepotism earlier U.S. senators appeared archetypal connected CryptoSlate.
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