Silvergate Reassures Investors In Its Trustworthiness And Stability

In a recent disclosure to the media on the 28th of November this year, Silvergate Capital made it known that it held close to no connections to the yet-bankrupt BlockFi company.

Less than $20 million of Silvergate’s customers’ deposits, according to the company, are invested in the struggling business. 

Silvergate resolves clients’ worries

As the consequences of the FTX bankruptcy row are still seen and affect even more people each day, inspiring the spreading of fearful moods in the society, the feeling of instability, and mistrust in crypto and its future.

Silvergate company, the top finance organization with a focus on cryptocurrencies with the main office in the state of California, has helps its clients to feel safer about their assets.

It was stated that their depositions, held on their account on the BlockFi, are insignificant.

The team said in a statement that Silvergate only hold just twenty-million-dollars in depositions on the BlockFi platform, and that sum only makes up a small portion of the clients’ overall possessions, that as of Q3, 2022, totaled over $13 billion. 

According to Silvergate CEO Alan Lane, as the electronic possessions market goes on to change, it is important to once again stress that Silvergate was created with a well-thought system to deal with stress and with the market instability in mind.

The supporting engineers are on call round the clock each day and during the whole week, working to assist our clients as best they can during this trying time, and the SEN is still functioning as intended.

Silvergate BTC loaning services are not BlockFi

It’s important to notice, that Silvergate has stated BlockFi not to be a supporting company for its Bitcoin-related credits and that it possesses no finances on BlockFi. 

The ACH (Automated Clearing House) services that Silvergate provided to BlockFi are covered by a first priority lien and security interest in the amount of $10 million that Silvergate disclosed.

After the recent collapse of the FTX platform, which was reported to have given the former a loan equal to two-hundred-million-dollars in FTX coins, BlockFi is the most recent cryptocurrency company to go under.

Silvergate yet dispelled all worries of a potential bankruptcy within the organization, but the developments over the last several months indicate that no significant player in the cryptocurrency industry can be completely trusted.

The stock market was once argued to be healthy by SBF and its team.

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