Silvergate Capital (NYSE:SI) cleared breakeven early on, following yesterday’s 11.1% loss. Yesterday’s decline followed the bankruptcy filing by cryptocurrency lender BlockFi, and the further drop for Silvergate comes despite a statement that it has minimal exposure to BlockFi.
New York law firm Kaplan, Fox & Kilsheimer is reportedly investigating claims on behalf of Silvergate investors. On November 17, Bear Cave newsletter published an article entitled “The Great Crypto Collapse” discussing the exposures of Silvergate and other banks to the recent crypto collapse. Among other things, the article notes that Silvergate is mentioned in a forfeiture application connected to a money laundering operation, which allegedly states:
“Records produced by Silvergate Bank found: (i) During the period of September 2021 to June 2022 ten companies had transferred a total of over $425 million dollars off these cryptocurrency trading platforms into accounts held at different US banks, (ii) The accounts were receiving funds in the same pattern as those . . . used to facilitate the laundering of illicit funds.”
Moreover, Los Angeles-based Schall Law Firm is conducting its own probe, focusing on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors.
SI shares fought their way higher 32 cents, or 1.2%, to $26.22.
