U.S. judge rejects Silvergate Bank's request to dismiss FTX users' lawsuit against them
Judge Ruth Bermudez Montenegro of the Federal Court of San Diego rejected Silvergate's motion to dismiss from June, stating that Silvergate unfairly benefited itself at the expense of FTX users and denied the allegations. The judge stated that Silvergate has a duty of care to FTX customers because its Silvergate trading network is for the benefit of FTX customers. Silvergate's revenue comes from transaction fees and interest on deposits in exchange-related accounts. Prior to FTX, Silvergate's annual revenue was $7.6 million, but after depositing it into the exchange, that number jumped to $75.5 million.
Binance Executive Guangying Chen Operated Bank Accounts for US Affiliate, Bank Records Show
Bank records indicate that Guangying Chen, a senior executive at Binance, was the main operator of five bank accounts belonging to Binance's independent US affiliate, including one that held American customers' funds.
Federal Reserve Issues Consent Order to Silvergate Bank for Self-Liquidation Plan
The Federal Reserve Board has issued a consent order to Silvergate Bank and its parent company, as the bank plans to wind down operations and liquidate.
Binance Commingled User Funds Daily In Silvergate Bank Accounts – Reuters
According to three sources familiar with the matter, Binance, the world's largest crypto exchange, mixed billions of dollars in user funds with its revenue in 2020 and 2021, violating U.S. financial rules. The commingling of funds occurred almost daily in accounts held at Silvergate Bank. Binance failed to differentiate customer funds from company revenues, and there is a lack of internal controls. A former chief of the Securities and Exchange Commission's Office of Internet Enforcement commented that Binance customers shouldn't need a forensic accountant to locate their money.
Silvergate Capital to Cut Headcount as it Manages Liquidation of Crypto-Friendly Bank
Silvergate Capital has announced that it will be reducing its workforce significantly, leaving only a skeleton crew to manage the liquidation of its crypto-friendly bank. The company will be laying off 230 employees tomorrow, with additional layoffs to follow later in the year.
Robert F. Kennedy Jr. Wades Further Into Crypto Following Anti-CBDC Remarks
Democratic presidential candidate Robert F. Kennedy Jr. criticized what he called a “war on crypto” following earlier remarks he made opposing a U.S. central bank digital currency, or CBDC.
Metropolitan Commercial Bank Is Almost Done Exiting Crypto Business
Metropolitan Commercial Bank is nearing completion of its exit from the cryptocurrency market, with only $278.5 million in crypto-related deposits remaining. The bank's parent company, Metropolitan Bank Holding, announced the termination of crypto-related services in January due to recent industry developments and regulatory pressure.
Breaking the Stigma: Why Crypto Isn’t to Blame for Traditional Finance Failures
In the aftermath of the collapse, many people attributed the blame to crypto. However, crypto could be the solution rather than the root cause of the problem.
Stop Weaponizing Banks to Purge Legal Crypto Activity, Congressman Tells FDIC
Two major crypto-friendly banks announced their shutdown last week, Silvergate Bank and Signature Bank. In the case of Signature Bank, the FDIC officials alongside the Fed took the decision to shut down stating that it would help prevent the contagion from spreading. On Wednesday, March 15, Congressman Tom Emmer wrote a letter to the FDIC chairman Gruenberg seeking answers to questions over the reports that the regulatory is weaponizing the current instability in the US banking system in order to choke legal crypto activity in the United States. (coingape)
BlockTower Capital Funds Had Exposure to Silvergate, Signature Bank
Four private funds of crypto asset manager BlockTower Capital used now-shuttered Signature Bank, Silvergate Bank – and in one case, both – as custodians for the assets, according to the most recent regulatory filing required for investment advisers. The funds added up to about $940 million in gross asset value.
