Bank AI

Read

Silvergate, once known as a crypto-friendly bank, faces significant changes as CEO Alan Lane and two other key executives prepare to leave. 
Alan Lane and the firm’s chief legal officer, John Bonino, will step down on Aug. 15. Antonio Martino, the chief financial officer, will leave on Sept. 30. 
The departures were confirmed in an Aug. 15 <a href="https://www.sec.gov/Archives/edgar/data/1312109/000095015723000884/form8-k.htm" target="_blank" rel="noopener noreferrer nofollow">filing</a> with the US Securities and Exchange Commission (SEC) by the parent company, Silvergate Capital. The document outlined that the executives’ departures are part of the bank’s <a href="https://crypto.news/silvergate-to-wind-down-operations-and-liquidate-the-bank/" rel="noopener noreferrer nofollow">ongoing voluntary liquidation process</a>, which has been the firm’s priority for months. 
The three executives will receive severance benefits but won’t be subject to compensation from the company. 
Kathleen Fraher, Silvergate’s chief risk officer, will step up as the chief transition officer. Chief accounting officer Andrew Surry will fulfill principal financial officer duties. 
The company does not expect to appoint new top-level executives because of the plan to pursue bank liquidation. 
 You might also like: <a href="https://crypto.news/judge-combines-silvergate-and-ftx-lawsuits-over-alleged-ties/" rel="noopener noreferrer nofollow"> Judge combines Silvergate and FTX lawsuits over alleged ties </a> 
<h2 class="wp-block-heading" id="p-style-background-transparent-margin-top-0pt-margin-bottom-0pt-p-p-style-background-transparent-margin-top-0pt-margin-bottom-0pt-strong-style-background-transparent-margin-top-0pt-margin-bottom-0pt-silvergate-struggles-with-legislators-amid-massive-losses-strong-p">Silvergate struggles with legislators amid massive losses</h2> 
Silvergate’s downfall began after <a href="https://crypto.news/silvergate-failure-draws-attention-of-government-exes-and-crypto-community/" rel="noopener noreferrer nofollow">legislators criticized the bank</a> for failing to control transactions between the now-defunct Alameda Research and FTX. The firm revealed a $1 billion net loss in 2022’s fourth financial quarter, leading major<a href="https://crypto.news/binance-and-coinbase-claim-zero-exposure-to-silvergate-collapse/" rel="noopener noreferrer nofollow"> clients like Coinbase</a> to sever ties. 
The bank’s instant settlement platform, SEN, was a staple of its business, used heavily by institutional crypto clients. However, the Federal Deposit Insurance Corporation highlighted the risk of serving multiple crypto clients, stating that the practice can introduce liquidity risks. 
Silvergate’s troubles became apparent when users withdrew $8.1 billion in crypto deposits in the final fiscal quarter of last year, coinciding with the collapse of FTX. To weather the withdrawals, the company tapped the Federal Home Loan Bank for a $4.3 billion loan and sold around $5.2 billion in debt securities, actions that drew scrutiny from US Senators. 
Silvergate’s wind-down has sent ripples through the crypto ecosystem, with the failures of other crypto-friendly banks like <a href="https://crypto.news/silicon-valley-bank-collapsed-here-are-the-companies-affected/" rel="noopener noreferrer nofollow">Silicon Valley Bank</a> and <a href="https://crypto.news/signature-bank-collapse-due-to-regulators-management/" rel="noopener noreferrer nofollow">Signature Bank</a> following suit. 
 Read more: <a href="https://crypto.news/us-fed-to-cease-silvergate-capital-and-bank-activity/" rel="noopener noreferrer nofollow"> US Fed to cease Silvergate Capital and Bank activity </a>

Silvergate CEO and top execs to depart amid bank’s wind-down

Table of Contents

crypto.news

Other articles published on Aug 16, 2023

33 Billion SHIB Moved From Exchanges as Shytoshi Kusama Teases Shibarium Launch Today

CGPTsp — ChainGPT Staking Points

Judge Torres Allows Investment Banker as Declarant in Ripple vs. SEC

LFi One, the Smartphone That Can Mint Tokens

Huobi founder might own $128m property in Hong Kong

8 Arab Countries Request To Join BRICS Alliance

Join our free newsletter for daily crypto updates!