Silvergate CEO Alan Lane reassured investors that company assets are safe and comply with the law.
The insecure environment and controversial process in the crypto industry continues. The bankruptcy of FTX, one of the largest crypto exchanges in the world, caused serious loss of trust. Crypto companies are trying to be more transparent about their customers and investors. In particular, the crypto exchange Binance started a new era by introducing the proof-of-reserve system. However, this whole process brought with it allegations and discussions. Many investors began to scrutinize all crypto companies in case of a possible collapse. In this context, Silvergate has problems with stock depreciation and investors’ confidence problems. Finally, the CEO of the company made statements to create an environment of trust.
Silvergate Stumbles on Stock Loss, FTX Events
Investment and management company Silvergate came to the fore with class action lawsuits filed against the company last week. This lawsuit involved allegations that the company knowingly or willingly diverted customer deposits to FTX and Alameda. Defendants touted Silvergate as an accomplice in the FTX events.
In the continuation of the painful processes, there was a great decline in Silvergate shares. The shares of the crypto bank, which lost more than 50 percent in value last month, continue its bad course this month.
Commenting on the FTX controversy, Alan Lane, CEO of the company, said, “And as I mentioned earlier, if we detect unexpected or potentially alarming activity in any account, we conduct an investigation and, where necessary, covertly report suspicious activity in accordance with federal regulation. We’re getting ready.” said.
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 underlined that customers have uninterrupted access to services.
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