Reserve

Bank

Bitcoin ETF

Bitcoin

The Federal Reserve Board announced on July 26 that it had lifted all enforcement actions against <a href="https://silvergate.com/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Silvergate Bank</a> and its parent company, Silvergate Capital Corporation.
The decision followed the bank’s successful winding down of operations, which included reimbursing customers and ceasing its activities as a financial institution.
While the Federal Reserve Board responded to Cointelegraph’s request for additional information, it declined to comment specifically on the matter.
Silvergate Bank’s collapse in March 2023 marked a significant event in the financial sector.
A month prior, the bank’s stock had become the second-most shorted on Wall Street, with 72% of shares borrowed for short selling.
This intense market scrutiny was compounded by Silvergate’s delay in filing its 10-K form in early March, an annual financial report required by U.S. law.
The delayed filing led to a 31% drop in Silvergate’s stock value.
On March 8, 2023, Silvergate officially collapsed, citing financial shortfalls due to the fallout from FTX’s collapse and the subsequent withdrawal of funds by major clients.
In response, the Federal Reserve Board oversaw the bank’s self-liquidation plan to ensure that customer reimbursements were maximized.
READ MORE: <a href="https://www.cryptointelligence.co.uk/blackrocks-bitcoin-etf-sees-continued-inflows-despite-decline-in-positive-market-sentiment/" data-wpel-link="internal" rel="noopener noreferrer nofollow">BlackRock’s Bitcoin ETF Sees Continued Inflows Despite Decline in Positive Market Sentiment</a>
Despite this oversight, not all affected parties were satisfied, leading to lawsuits against the defunct bank.
Amid the liquidation process and mounting legal challenges, CEO Alan Lane and other top executives left the company in August 2023.
Despite the end of the Federal Reserve’s enforcement actions, Silvergate’s legal challenges persist.
In March 2024, a federal court judge allowed a class-action lawsuit to proceed, alleging that Silvergate facilitated the FTX fraud.
Additionally, in July 2024, the Securities and Exchange Commission filed a lawsuit against Silvergate Capital Corporation, accusing it of complicity in the same fraud.
These ongoing legal issues suggest that Silvergate has not yet fully emerged from its difficulties.
To submit a <a href="https://www.cryptointelligence.co.uk/category/press-releases/" data-wpel-link="internal" rel="noopener noreferrer nofollow">crypto press release (PR)</a>, send an email to <a href="mailto:sales@cryptointelligence.co.uk" rel="noopener noreferrer nofollow">sales@cryptointelligence.co.uk</a>.

Federal Reserve Ends Enforcement Actions Against Silvergate Bank Amid Ongoing Legal Challenges

Crypto Intelligence

Autres articles publiés le 28 juil. 2024

BNB Reclaims Fourth Spot as OpenLiquidity Launch Boosts Ecosystem

Hong Kong legislator eyes Bitcoin for fiscal reserves

VeChain’s Strategic Retest Signals Potential Surge to $0.05

Michael Saylor Sets Audacious $49 Million Bitcoin Price Target – Details

$1M in the Bag! MOONHOP Jumps Ahead as TURBO and Dogecoin Look On

Shiba Inu Could Surge to $0.0000259 Amid Bullish Signals

Join our free newsletter for daily crypto updates!