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Silvergate CEO Alan Lane and two other key executives are set to depart from their positions amid a wind-down of the once crypto-friendly bank.<\/p>\n
Lane and the firm\u2019s chief legal officer John Bonino will depart on Aug. 15, while Antonio Martino, chief financial officer of the company, will depart on Sept. 30.<\/p>\n
In an Aug. 15 filing<\/a> to the Securities and Exchange Commission, the bank\u2019s parent company Silvergate Capital said the departures are part of its previously disclosed plan to wind down operations and voluntarily liquidate Silvergate Bank. <\/p>\n A story as old as time.<\/p>\n -Silvergate Bank is a California bank operating from 1988 to 2023.<\/p>\n -The company began providing services for CrYpTO users in 2016.<\/p>\n -In March 2023, the bank announced plans to wind down and liquidate.#bitcoin<\/a> only.<\/p>\n \u2014 Daniel Prince (@PrinceySOV) March 10, 2023<\/a><\/p><\/blockquote>\n Silvergate noted the three departing executives will not be entitled to any further compensation under their respective employment agreements but will receive severance benefits. <\/p>\n The departures come amid a wave of proposed lawsuits involving the bank. <\/p>\n Silvergate and Lane are named in multiple proposed lawsuits<\/a> mostly revolving around its alleged role in the misconduct of crypto exchange FTX. <\/p>\n In May, the Texas-based Word of God Church also sued<\/a> the bank alleging it used $25 million of church deposits to participate in FTX\u2019s \u201cfraudulent\u201d scheme, adding Silvergate and Lane had “unparalleled knowledge of the rampant fraud and corporate malfeasance.” <\/p>\n Another proposed class action alleged<\/a> the bank did not perform adequate due diligence on the crypto firms it brought on as clients, such as FTX, Alameda and North Dimension.<\/p>\n Other customers, according to the suit, include Binance.US, Huobi Global, Nexo Capital, and Bittrex.<\/p>\n Related: <\/em><\/strong>Binance sold USDC for BTC and ETH after Silvergate Bank collapse: PoR report<\/em><\/strong><\/a><\/p>\n In March, Silvergate announced it would be winding down its bank\u2019s operations<\/a> after suffering $1 billion worth of losses as a consequence of the FTX\u2019s demise, one of Silvergate\u2019s leading clients.<\/p>\n The bank\u2019s collapse sent reverberations through the crypto ecosystem and the United States banking sector<\/a> as it was one of the few regulated financial institutions providing banking services to crypto firms and exchanges. <\/p>\n Alan Lane (@SilvergateCEO) recently took Silvergate Bank public.<\/p>\n They have become one of the most important pieces of infrastructure in the industry.<\/p>\n He tells me everything in this interview, including why he believed in Bitcoin before his peers https:\/\/t.co\/VKx31h2HJQ<\/a><\/p>\n\n
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