Tether USDt

MicroStrategy and Tether are the latest companies to disclaim any significant connection to Silvergate Bank. Once Silvergate stated on March 1 that it would postpone publishing its annual 10-K financial report, many speculated that the cryptocurrency bank was near insolvency. MicroStrategy, which has over 130,000 Bitcoin, confirmed that Silvergate does not retain their collateral.The Michael Saylor-founded business noted that a bankruptcy or insolvency event would not &#34;accelerate&#34; Silvergate debt repayment until Q1 2025.Tether CTO Paolo Ardoino tweeted on March 2 that Silvergate does not affect Tether.Cryptocurrency bank failure might hurt the industry.Silvergate, a fintech company, offers financial infrastructure solutions and services to the world&#39;s leading cryptocurrency exchanges, institutional investors, and mining firms.Silvergate Exchange Network, a 24/7 payments network, has processed over $1 trillion since 2017.The company offers stablecoin infrastructure, digital asset custody, and collateralized lending to cryptocurrency sector institutions. Despite huge network effects, the late 10-K filing seems to have affected its collaborations.Coinbase, Circle, Bitstamp, Galaxy Digital, and Paxos said they will reduce their agreements with the cryptocurrency bank within 24 hours of the late 10-K filing.Gemini also ceased taking Silvergate ACH and wire transfer deposits and withdrawals.Crypto.com, Blockchain.com, Wintermute, GSR, and Cboe Digital have reportedly terminated connections.Binance&#39;s spokesman told Cointelegraph that the exchange does not work with Silvergate or utilize its services.As FTX collapsed in November, Silvergate announced a $1 billion net loss in Q4 2022, raising concerns about its finances.The US Department of Justice is investigating Silvergate and FTX&#39;s operations, but no criminality has been found. On Feb. 14, plaintiffs in a proposed class-action lawsuit against FTX accused Silvergate of &#34;aiding and abetting&#34; a &#34;multibillion-dollar fraudulent scheme&#34; by former CEO Sam Bankman-Fried.In Q4 2022, the bank processed over $3.8 billion in client deposits despite several corporations denying connection to Silvergate. Silvergate reported a sharp drop from $11.9 billion in Q3 2022.

MicroStrategy, Tether Adds to Firms Distancing From Silvergate as Stock Dives 57%

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