Alan Lane, CEO of Crypto Bank Silvergate, assured investors that the company is complying with the law and investors’ assets are safe.
The bankruptcy of the crypto exchange FTX, which has the world’s largest trading volume, caused an insecure environment and controversial processes in the crypto industry. Thereupon, crypto exchanges took various actions to be more transparent to their customers and investors. As a pioneer, Binance started the new era with the Proof of Reserves system. However, this whole process was not enough to end the allegations and discussions. Many investors have begun to scrutinize crypto companies in detail in case of a possible bankruptcy or collapse. Silvergate is one of the companies that has problems in terms of share depreciation and investor confidence. Following this, Silvergate’s CEO issued a statement in order to instill confidence in his investors.
Shares Impairment and FTX Events on Silvergate
Last week, class action lawsuits were filed against cryptocurrency bank Silvergate.Allegations of “knowingly or willingly diverting customer deposits to FTX and Alameda” were the main subject of the lawsuits. Defendants tout Silvergate as an accomplice in the FTX events.
In the continuation of the painful processes, there was a great decline in Silvergate’s shares. The shares of the crypto bank, which lost more than 50 percent of their value last month, continue their bad course this month.
Regarding the FTX allegations, CEO Alan Lane said, “And, as I’ve noted previously, if we detect activity that is unexpected or potentially concerning in any account, we conduct an investigation and, when required, confidentially file a suspicious activity report in accordance with federal regulation.”
Alan Lane stated that after the collapse of FTX, they had an intense struggle with opportunists and those who shared false information. The CEO of the company also underscored that customers have uninterrupted access to services.
