Tag: Silvergate Bank

The U.S. Securities and Exchange Commission (SEC) has revealed new information about the crypto exchange Binance. According to the SEC, Binance utilized Signature Bank and Silvergate Bank to facilitate the movement of billions of dollars worldwide. The court filings exposed complex transactions involving Binance and its associated companies, with funds being transferred to accounts in various countries such as Kazakhstan, Lithuania, and the Seychelles.

Silvergate Bank is currently under scrutiny by the U.S. Federal Reserve Board (FED) and the California Department of Financial Protection and Innovation as it undergoes the process of winding down its business operations. In a collaborative enforcement action, the Fed and DFPI jointly issued a consent order last week, which mandates the La Jolla, California-based bank to present a self-liquidation plan to state and federal regulators within 10 days.

The Silicon Valley Bank's (SVB) sudden death on Friday triggered shockwaves in the already traumatized crypto scene. One of the victims of the SVB collapse was the USDC stablecoin, which is 100% collateralized with cash and US Treasuries. $3.3 billion of USDC’s cash reserves had been deposited with SVB at the time of the collapse. The USDC price dived but recovered quickly. USDC issuer Circle said they hope the regulators will find a solution that protects customers’ assets 100%.

First, it hit the Californian Silvergate Bank. Now, shares of SVB Financial (SIBV), which owns Silicon Valley Bank, the 16th largest bank in the US, plunged 60.41% after the company announced it was raising more than $2 billion in new capital to offset $1.8 in losses. The shares are now down 84% from November 2021 high. Silicon Valley Bank is heavily involved with all aspects of the U.S. startup scene, including crypto.