Silvergate denies recent FUD and confirms minimal exposure to BlockFi

Silvergate Capital was quick to distance itself from now bankrupt crypto lender BlockFi.

Silvergate denies recent FUD, confirms minimal exposure to BlockFi New

Institutional crypto services provider Silvergate Capital has confirmed its minimal exposure to struggling crypto lending firm BlockFi.

On November 28, Silvergate announced that its custodial relationship with BlockFi was "limited to less than $20 million of its total deposits from all digital asset customers." Those deposits totaled $13.2 billion in the third quarter, according to the company's earnings report.

He added that BlockFi was not the custodian of its Bitcoin-backed leveraged loans and that the company had no investment in BlockFi.

To ease investor jitters, Silvergate CEO Alan Lane said, "As the digital asset industry continues to transform, I want to reiterate that Silvergate's platform was purpose-built to manage stress and volatility."

Silvergate provides statement on minimum exposure to BlockFi https://t.co/FoBqzylpr6

— Silvergate Bank (@silvergatebank) November 28, 2022

Silvergate has been the subject of much FUD (Fear, Uncertainty, and Doubt), or "false and misleading statements", in its words.

On November 29, Swiss technical analyst and investor Walter Bloomberg told his 622,000 Twitter followers, "Silvergate Capital allegedly loaned money to BlockFi", but provided no evidence.

Others added to the FUD fest with multiple Tweets over the past week, however, most of them lacked detail.

November 28 Cointelegraph

Silvergate denies recent FUD and confirms minimal exposure to BlockFi

Silvergate Capital was quick to distance itself from now bankrupt crypto lender BlockFi.

Silvergate denies recent FUD, confirms minimal exposure to BlockFi New

Institutional crypto services provider Silvergate Capital has confirmed its minimal exposure to struggling crypto lending firm BlockFi.

On November 28, Silvergate announced that its custodial relationship with BlockFi was "limited to less than $20 million of its total deposits from all digital asset customers." Those deposits totaled $13.2 billion in the third quarter, according to the company's earnings report.

He added that BlockFi was not the custodian of its Bitcoin-backed leveraged loans and that the company had no investment in BlockFi.

To ease investor jitters, Silvergate CEO Alan Lane said, "As the digital asset industry continues to transform, I want to reiterate that Silvergate's platform was purpose-built to manage stress and volatility."

Silvergate provides statement on minimum exposure to BlockFi https://t.co/FoBqzylpr6

— Silvergate Bank (@silvergatebank) November 28, 2022

Silvergate has been the subject of much FUD (Fear, Uncertainty, and Doubt), or "false and misleading statements", in its words.

On November 29, Swiss technical analyst and investor Walter Bloomberg told his 622,000 Twitter followers, "Silvergate Capital allegedly loaned money to BlockFi", but provided no evidence.

Others added to the FUD fest with multiple Tweets over the past week, however, most of them lacked detail.

November 28 Cointelegraph

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