Silvergate Crypto Bank Reveals $2.5 Million Exposure to Genesis

Silvergate Capitalthe parent company of Silvergate Bank, disclosed limited exposure to Genesis Global Capital in a press release published on January 20.

Silvergate said it had deposits of less than $2.5 million between it and Genesis on two separate dates: December 31, 2022, and January 19, 2023.

The company said that Genesis is not a custodian of its SEN Leverage loans, which Bitcoin guarantees. Silvergate also said it has “no outstanding loans or investments in Genesis.” The company assured its clients that their assets were safe and concluded by stating that its exposure to Genesis is “minimal.”

Silvergate similarly downplayed its relationship with Sam Bankman-Fried’s FTX exchange after the latter company collapsed in November. Silvergate said it had less than $1.2 billion in FTX deposits at the time, which was less than 10% of its total deposits. However, the company was accused of being in the middle of the collapse of FTX.

The ongoing controversy led to an $8.1 billion bank run that forced Silvergate to sell a portion of its assets and lay off 40% of your staff this month.

Whether the most recent Genesis flop will have such dramatic long-term effects remains to be seen. Your crypto lending unit Filed for Chapter 11 bankruptcy just today.

genesis must more than $3.5 billion to its biggest creditors, including Mirana (ByBit’s investment arm), Cumberland DRW, MoonAlpha (operators of Babel Finance), Stellar Development Foundation and VanEck’s New Finance Income Fund.

Silvergate was not mentioned in the previous report.

Published in: US, Bankruptcy

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