Silvergate Capital CEO Alan Lane said short position investors and other opportunists have been spreading misinformation for quick and easy income over the past few weeks.
In a letter dated December 5, Lane stated that last November, interested parties were trying to take advantage of the uncertainty in the market caused by the collapse in FTX.
Lane’s crypto-focused firm, Silvergate Capital, has had to deny allegations that it indirectly invested in the bankrupt BlockFi company and was in a difficult situation as a result.
Lane also used his latest letter to clarify his investment relationship with FTX and the company’s strong risk management approach.
“Silvergate conducted significant due diligence on FTX and its related entities, including Alameda Research, both during the onboarding process and through ongoing monitoring, in accordance with our risk management policies and procedures.” Read more here: https://t.co/9nAViJOzoi
— Silvergate Bank (@silvergatebank) December 5, 2022
Silvergate Capital’s CEO also reiterated that the company complies with anti-money laundering detection law and the US Anti-Terrorism Act, which requires auditing every account, including FTX and Alameda research.
“Silvergate provided FTX and its sister company Alameda Research with due diligence during both recruitment and ongoing surveillance,” Lane said.
Silvergate CEO also said that it has a flexible balance sheet and has no shortage of liquidity. Lane added that client funds continue to be stored securely.
On the other hand, the company has been the material of many speculations in the past weeks. Silvergate has grappled with speculation as to whether it will be able to maintain its liquidity position during the downturns for FTX and whether it will be stuck with its close relationship with FTX.
Meanwhile, Lane confirmed in a statement that Silvergate customers can continue to access their US dollar deposits whenever they need it and the Silvergate Exchange Network (SEN) continues to operate uninterrupted during this time.
According to data from MarketWatch, Lane’s letter has somewhat slowed down Silvergate’s (SI) share price, which fell 8.49 percent to $24.24 last Monday.
Silvergate’s share price has lost 52.43% in the last month as of the time of publication.