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☆ Crypto bank Silvergate says it'll shut down as the market meltdown claims its 1st mainstream casualty
▼ + stars: | 2023-03-09 | by ( George Glover | ) www.businessinsider.com time to read: +4 min

"In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of bank operations and a voluntary liquidation of the bank is the best path forward," Silvergate Capital, the holding company for Silvergate Bank, said Wednesday. But the combination of the Federal Reserve's aggressive interest-rate hikes and FTX's collapse in November cast a shadow over its future. Last week, Exness strategist Wael Makarem warned of the potential fallout for the crypto market and industry. "As a result, the market could be exposed to new price corrections while investors could be concerned about a potential impact on other market players," he said. Read more: Troubled crypto bank Silvergate sees regulators swoop in to try to help it stay afloat

☆ Stocks making the biggest moves midday: General Electric, Silvergate Capital, Peloton, Etsy and more
▼ + stars: | 2023-03-09 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Silvergate Capital — The crypto lender's stock sank 23% after the company announced it will wind down operations and liquidate Silvergate Bank. Revenue came in at $150.2 million, topping the $145 million expected. CEO Dustin Moskovitz also said he was buying 30 million shares. Revenue came in at $103.5 million compared to the $101.7 million expected. Adjusted earnings per share came in 1 cent ahead of estimates at 18 cents.

☆ Wells Fargo says buy Signature Bank, the 'last game in Crypto-town'
▼ + stars: | 2023-03-09 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +1 min

With the demise of Silvergate Bank, investors should turn their attention to New York-based Signature Bank ( SBNY ), which has a big opportunity to pick up business from the crypto market, according to Wells Fargo. Late Wednesday, Silvergate Capital said it would shut down Silvergate Bank, which had become the go-to bank for crypto businesses in the past few years as larger banks steered clear. Businesses still have Signature Bank, however. "Signature [is the] last game in crypto-town," said Wells Fargo equity analyst Jared Shaw, adding, "It's the only larger bank remaining with a functional on-ramp for institutional crypto investors. Wells Fargo has an overweight rating on Signature with a $185 price target, implying almost 95% upside from where shares traded Thursday afternoon.

☆ Silvergate shutting down operations and liquidating bank
▼ + stars: | 2023-03-08 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +2 min

Silvergate Capital announced on Wednesday that it will wind down operations and liquidate Silvergate Bank. The other is the New York-based Signature Bank which has more than $114 billion dollars in total assets. "In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of Bank operations and a voluntary liquidation of the Bank is the best path forward," the company said in a statement. After the market close on March 3, Silvergate suspended its payments platform known as the Silvergate Exchange Network, or SEN, which was considered to be one of its core offerings. Crypto companies like Coinbase and Galaxy Digital raced to cut ties with Silvergate last week after the bank warned that it was unsure whether it had the ability to stay in business.

☆ Stocks making the biggest moves after hours: Silvergate Capital, MongoDB, Uber and more
▼ + stars: | 2023-03-08 | by ( Hakyung Kim | ) www.cnbc.com time to read: +1 min

Uber — The ride-sharing platform's shares gained 2.5% after Bloomberg reported that the company is weighing a potential spinoff of its freight logistics unit. Silvergate Capital — Shares slid 36% after the company announced it will wind down operations and liquidate Silvergate Bank. SVB Financial — The financial services company's stock fell 6% after SVB Financial said that it intends to offer $1.25 billion of its common stock and $500 million of depositary shares. LoanDepot — The mortgage lender's shares fell 2.6% after its fourth-quarter earnings report missed analysts' expectations. Fossil — The fashion accessories company's shares rose 2%.

☆ Factbox: Silvergate crisis: Crypto industry majors drop embattled lender
▼ + stars: | 2023-03-06 | by ( ) www.reuters.com time to read: +3 min

La Jolla, California-based Silvergate, one of the most influential banks in the digital asset industry, also said it has made a "risk-based decision" to discontinue the Silvergate Exchange Network that enabled crypto payments. loadingCoinbase Global (COIN.O):The crypto exchange said it was no longer accepting or initiating payments to or from Silvergate. loadingCrypto.com:A spokesperson for the crypto exchange said in an emailed statement to Reuters it was temporarily suspending USD deposits and withdrawals via Silvergate out of caution. Gemini:The crypto firm said on Twitter it has stopped accepting customer deposits/processing withdrawals via automated clearing house (ACH) and wire transfers through Silvergate on the Gemini exchange. loadingCboe Clear Digital:The company said it would be pausing all transactions with Silvergate Bank at this time until further notice.

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBitcoin and Ether rise despite Silvergate suspending its crypto payments network: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Caitlin Long, founder and CEO of Custodia Bank, which aims to bridge traditional finance and digital assets, discusses the uncertainty at Silvergate Bank.

☆ Silvergate's deepening crisis jolts crypto stocks
▼ + stars: | 2023-03-06 | by ( Manya Saini | ) www.reuters.com time to read: +2 min

The crypto-focused bank said late on Friday that it had made a "risk-based decision" to discontinue the Silvergate Exchange Network (SEN) effective immediately. "The SEN is Silvergate's main flagship product that previously was the key attraction for depositors to bring funds to the bank," said analysts at Wedbush. Shares of crypto lending peer Signature Bank (SBNY.O) also fell roughly 2.5% in morning trade, while crypto exchange Coinbase Global (COIN.O) was down nearly 1%. Crypto firm Riot Platforms Inc (RIOT.O), and BTC mining machine makers Ebang International and Canaan Inc (CAN.O) drop between 1% and 2%. "The crypto market reacted to the negative news from Silvergate Bank, with both bitcoin and ethereum down about 4.8% for the week," analysts at brokerage Bernstein said.

☆ Crypto stocks fall as Silvergate crisis deepens
▼ + stars: | 2023-03-06 | by ( ) www.reuters.com time to read: +1 min

March 6 (Reuters) - Shares of cryptocurrency-related companies fell in premarket trading on Monday after Silvergate Capital Corp (SI.N) pulled the plug on its crypto payments network, following its doubts about keeping its business viable. The digital assets-focused bank said late on Friday that effective immediately it had made a "risk-based decision" to discontinue the Silvergate Exchange Network (SEN). Shares of the La Jolla, California-based bank were down more than 4% in premarket trading, while crypto lending peer Signature Bank (SBNY.O) fell 3%. Crypto exchange Coinbase Global (COIN.O) and BTC mining machine maker Ebang International were both down about 1% each. "The crypto market reacted to the negative news from Silvergate Bank, with both Bitcoin and Ethereum down ~4.8% for the week," analysts at brokerage Bernstein said in an industry note.

March 3 (Reuters) - Silvergate Capital Corp (SI.N) said on Friday it made a "risk-based decision" to discontinue the Silvergate Exchange Network, its crypto payments network, two days after the digital asset-focused bank raised doubts about its viability. "Effective immediately Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network (SEN). The Silvergate Exchange Network, one of the bank's most popular offerings, enabled round-the-clock transfers between investors and crypto exchanges, unlike traditional bank wires, which can often take days to settle. Silvergate shares on Friday slumped more than 2% in after-hours trading, after closing up 0.9% at $5.77 in regular trade. Stablecoin issuers Paxos and Circle, Cboe’s digital asset exchange, and crypto exchanges Bitstamp and Gemini also suspended their partnerships with Silvergate.

☆ Binance reportedly had secret access to its US arm's bank account
▼ + stars: | 2023-02-17 | by ( ) edition.cnn.com time to read: +5 min

The US partner of global cryptocurrency exchange Binance has confirmed that a trading firm managed by Binance CEO Changpeng Zhao operated as a market maker on its platform. It did not elaborate on when in 2021 the activity ceased, or comment on Zhao’s role at the trading firm. A spokesperson for Binance.US referred CNN to its Thursday tweet, emphasizing the line that reads: “ONLY Binance.US employees have access to Binance.US bank accounts. Before that story’s publication, Binance.US had told Reuters that “Merit Peak is neither trading nor providing any kind of services on the Binance.US platform,” without giving further details. Adobe StockBinance.US’s executives were concerned by the outflows from the Silvergate account to Merit Peak because the transfers were taking place without their knowledge, according to the messages reviewed by Reuters.

LONDON, Feb 17 (Reuters) - The U.S. partner of global cryptocurrency exchange Binance has confirmed that a trading firm managed by Binance CEO Changpeng Zhao operated as a market maker on its platform. It did not elaborate on when in 2021 the activity ceased, or comment on Zhao's role at the trading firm. Binance transferred over $400 million from the account at California-based Silvergate Bank to Merit Peak between January and March of 2021, Reuters reported on Thursday. Before that story's publication, Binance.US had told Reuters that "Merit Peak is neither trading nor providing any kind of services on the Binance.US platform," without giving further details. A spokesperson for the global Binance exchange, which did not respond to Reuters' questions for the story on Thursday, told crypto news outlet CoinDesk that the transfers were "a Binance.US issue."

☆ Crypto giant Binance moved $400 million from U.S. partner to firm managed by CEO Zhao
▼ + stars: | 2023-02-16 | by ( ) www.cnbc.com time to read: +6 min

The Binance.US account was registered under the name of BAM Trading, the U.S. exchange's operating company, according to the records. Prime Trust made $650 million in wire transfer deposits into the Binance.US account during the quarter, the bank records show. A Binance.US spokesperson, Kimberly Soward, did not address Reuters' questions about the transfers detailed in the bank records. The Binance global exchange, Binance CEO Zhao and Prime Trust did not respond to detailed questions about the transfers. The Binance.US account records reviewed by Reuters detail each transaction between January and the end of March 2021.

Prime Trust made $650 million in wire transfer deposits into the Binance.US account during the quarter, the bank records show. The Binance global exchange, Binance CEO Zhao and Prime Trust did not respond to detailed questions about the transfers. Among the dealers on Binance.US was Merit Peak, according to company messages, the trading firm managed by CEO Zhao. From January to March 2021, the account records show that Merit Peak received 89 transfers from the Binance.US SEN account totalling $404 million. These transfers often immediately followed a deposit into the Binance.US account by Prime Trust, the crypto custodian firm for Binance.US client funds.

☆ Boies, co-counsel move to grab control of all private FTX cases
▼ + stars: | 2023-02-13 | by ( Alison Frankel | Thomson Reuters | Alison Frankel Has Covered High-Stakes Commercial Litigation As A Columnist For Reuters Since A Dartmouth College Graduate | ) www.reuters.com time to read: +7 min

Judicial Panel on Multidistrict Litigation, that the judge overseeing their Miami cases, U.S. District Judge Michael Moore, has already proven in their brand ambassador cases that he can steer FTX cases quickly and efficiently. Not everyone pursuing claims on behalf of FTX customers agrees with Boies and Moskowitz. (To be clear, these private cases are different from cases that could be brought by a court-appointed receiver or trustee in FTX’s Chapter 11 bankruptcy.) If the cases go to California, the California slate is a likelier candidate. It will be a few months before any ruling on the Boies and Moskowitz consolidation petition.

☆ Feds seized nearly $700 million from FTX founder Bankman-Fried
▼ + stars: | 2023-01-21 | by ( Dietrich Knauth | ) www.reuters.com time to read: +1 min

Jan 20 (Reuters) - Federal prosecutors have seized nearly $700 million in assets from FTX founder Sam Bankman-Fried in January, largely in the form of Robinhood stock, according to a Friday court filing. Bankman-Fried, who has been accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, has pleaded not guilty to fraud charges. The ownership of the seized Robinhood shares, valued at about $525 million, has been the subject of disputes between Bankman-Fried, FTX, and bankrupt crypto lender BlockFi. The DOJ seized more than $7 million from other Silvergate accounts associated with Bankman-Fried and FTX. The DOJ previously seized nearly $50 million from an FTX Digital Markets account at Moonstone Bank, a small bank in Washington state.

Federal prosecutors seized nearly $700 million in cash and assets connected to Sam Bankman-Fried, primarily in the form of Robinhood shares that were owned by the FTX founder, a court filing revealed Friday. Bankman-Fried was arrested on criminal fraud charges in December and is released on a $250 million bond as he awaits trial. Federal prosecutors have alleged that the Robinhood shares were purchased using allegedly stolen customer funds. Bankman-Fried has denied misappropriating customer assets. Those three Binance accounts were the only seized assets that did not have values attached to them.

☆ Cryptoverse: Bitcoin digs in for a bumpy new year
▼ + stars: | 2023-01-10 | by ( Lisa Pauline Mattackal | ) www.reuters.com time to read: +4 min

[1/2] Bitcoin are seen in this illustration picture taken September 27, 2017. The overall global crypto market cap has risen 5% to $871 billion since Jan. 1, but it's still down over 57% from this time last year. Bitcoin itself has gained 4.3% since the start of 2023, though stuck in a narrow range between $16,500 and $17,300. For some market players, though, subdued sounds pretty good after the bitcoin bloodbath of 2022. Reuters GraphicsTHE BULL'S TALEMarcus Sotiriou, analyst at digital asset broker GlobalBlock, pointed to tightening Bollinger bands - a technical indicator tracking price and volatility - on bitcoin charts.

☆ Banks' war against fintechs is a battle they're destined to lose
▼ + stars: | 2023-01-06 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

And while this shouldn't bother banks — they make plenty of money doing what they do best — this is Wall Street. In fact, the face of Wall Street, JPMorgan CEO Jamie Dimon, literally declared war on fintechs on an earnings call in 2021. But, as Insider's Bianca Chan and Reed Alexander recently outlined in a fantastic feature, banks' bid to topple fintechs is hopeless. Whether it's JPMorgan's digital-only bank Finn or, more recently, Goldman Sachs' Marcus, banks' attempt to cosplay as fintechs rarely ends well. Click here to read more about why banks are doomed to keep failing in their fight against fintechs.

☆ Crypto firms off to rocky start in 2023 with outflows, layoffs and a lawsuit
▼ + stars: | 2023-01-05 | by ( Hannah Lang | ) www.reuters.com time to read: +4 min

The fallout from the collapse of crypto exchange FTX and criminal charges leveled against its founder Sam Bankman-Fried weighed heavily on the sector this week. Among those hit were Genesis Global Capital, which laid off staff, and crypto-focused Silvergate Bank, which reported a large fall in deposits. Another crypto entrepreneur, Alex Mashinsky, the founder and former CEO of Celsius Network, also encountered a legal battle on Thursday. The accounts at Silvergate Bank and Farmington State Bank, which does business as Moonstone Bank, held about $143 million, court records showed. Crypto exchange Gemini, which had a crypto lending product in partnership with Genesis, and other Genesis creditors have been agitating for a solution to avoid a situation similar to FTX’s rapid descent into bankruptcy.

[1/3] The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew KellyJan 4 (Reuters) - U.S. prosecutors are in the process of seizing shares of Robinhood Markets Inc (HOOD.O) tied to Sam Bankman-Fried, who has been charged with fraud in the collapse of the FTX cryptocurrency exchange, a U.S. attorney told a judge on Wednesday. He said the Robinhood shares were subject to litigation and it was an "open question" about who owns them. The Robinhood stock, worth about $465 million at Wednesday's late afternoon price of $8.30 per share, is also being claimed by BlockFi Inc, another bankrupt crypto firm. BlockFi is suing Emergent in a bid to seize the Robinhood stock, which was pledged by Alameda as collateral to guarantee repayment of a loan made by BlockFi.

[1/3] The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company's IPO in New York City, U.S., July 29, 2021. The Department of Justice did not believe the 56 million shares of Robinhood, worth about $465 million, were property of a bankruptcy estate, U.S. attorney Seth Shapiro told U.S. Bankruptcy Judge John Dorsey, who is overseeing the FTX bankruptcy. Bankrupt crypto firm BlockFi, FTX and liquidators in Antigua have all laid claim to the Robinhood stock, along with Bankman-Fried. He said the Robinhood shares were subject to litigation and it was an "open question" about who owns them. BlockFi is suing Emergent in a bid to seize the Robinhood stock, which was pledged by Alameda as collateral to guarantee repayment of a loan made by BlockFi.

☆ This little-known firm with a weird website was central to the misappropriation of FTX customers' money, regulators say
▼ + stars: | 2022-12-27 | by ( Gretchen Morgenson | Gretchen Morgenson Is The Senior Financial Reporter For The Nbc News Investigative Unit. A Former Stockbroker | She Won The Pulitzer Prize In For Her | ) www.nbcnews.com time to read: +7 min

Still, North Dimension had a crucial role in the FTX mess, regulators now say. In fact, they contend, the little-known company was central to the furtive misappropriation of FTX customers’ funds. But North Dimension Inc. also appears to have been a fake online electronics retailer, an NBC News investigation found. The second North Dimension website is sparse, with just two pages superimposed on a photo of a mountain range. An analysis by DomainTools shows this North Dimension site was created on Oct. 3, 2022, and registered in Ontario, Canada.

Sen. Elizabeth Warren is introducing legislation Wednesday aimed at cracking down on money laundering in cryptocurrency. The Senate Banking Committee, which includes Warren, is holding a hearing Wednesday on the FTX debacle and aftermath. The bill would designate providers of digital asset wallets as money service businesses, bringing them under the authorities of the Bank Secrecy Act, which fights money laundering in the financial system. Further, it would prohibit financial institutions from dealing with services that blend the cryptocurrencies of users together, obscuring their origins. Warren has been an outspoken critic of FTX prior to Bankman-Fried’s indictment.

☆ Sen. Warren demands answers from Silvergate Bank about its business dealings with FTX
▼ + stars: | 2022-12-06 | by ( Gretchen Morgenson | Gretchen Morgenson Is The Senior Financial Reporter For The Nbc News Investigative Unit. A Former Stockbroker | She Won The Pulitzer Prize In For Her | ) www.nbcnews.com time to read: +13 min

“Life as a crypto firm can be divided up into before Silvergate and after Silvergate,” Bankman-Fried gushed in a testimonial featured recently, and prominently, on Silvergate Bank’s website. But in a conversation with an investment manager, a former top FTX employee said Silvergate was FTX’s primary banking partner. As a regulated bank, Silvergate has a duty to monitor clients’ accounts for suspicious activities that could signal fraud, money laundering or tax evasion, the filings note. FTX frequently used the Silvergate Exchange Network, according to the former FTX employee with direct knowledge of the transactions. A Silvergate spokeswoman said the change reflected a shift in functions taken on by a new president at the bank.

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