Silvergate denies recent FUD, confirms minimal exposure to BlockFi


Institutional crypto providers supplier Silvergate Capital has confirmed its minimal publicity to the embattled BlockFi crypto lending agency.

On Nov. 28, Silvergate announced that its deposit relationship with BlockFi is “restricted to lower than $20 million of its complete deposits from all digital asset prospects.” These deposits totaled $13.2 billion in Q3 in line with the agency’s income report.

It added that BlockFi was not a custodian for its Bitcoin-collateralized leverage loans and the agency has no investments in BlockFi.

To quell investor jitters, Silvergate CEO Alan Lane stated, “because the digital asset business continues to rework, I need to reiterate that Silvergate’s platform was purpose-built to handle stress and volatility.”

Silvergate has been the topic of plenty of FUD (worry, uncertainty, and doubt), or “false and deceptive statements,” in its phrases.

On Nov. 29, technical analyst and Swiss investor Walter Bloomberg told his 622K Twitter followers “Silvergate Capital stated to have lent cash to BlockFi,” however failed to supply any proof.

Others have added to the FUD fest with a number of Tweets over the previous week, nonetheless, most of them have been missing specifics.

On Nov. 28 Cointelegraph reported that BlockFi had turn out to be the most recent sufferer of the FTX contagion to file for Chapter 11 chapter.

The submitting acknowledged that BlockFi has greater than 100,000 collectors, property between $1 billion and $10 billion, and related liabilities. The newest high-profile crypto chapter seems to have fuelled this latest spherical of FUD, which Silvergate has seen match to refute.

Associated: Silvergate Capital’s crypto-to-fiat transfers decrease by $50B compared with Q3 2021

Earlier this month, the WSJ ran an article on Silvergate claiming that the corporate was battling the contagion fears. The crypto financial institution has seen its inventory costs plunge this yr however that has been the case for many publically listed crypto corporations.

SI costs declined 11.1% on the day to complete at $24.45 in after-hours buying and selling in line with Market Watch. Silvergate inventory has slumped 83.6% because the starting of the yr.

On Nov. 23, Cointelegraph reported that Block.one CEO, Brendan Blumer, had bought a stake in Silvergate Capital.