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Silvergate Capital Corporation ā a digital asset bank based in California ā revealed its deposit relationship to the troubled crypto firm BlockFi was limited to less than $20 million of its total deposits.Ā
The latter filed for Chapter 11 bankruptcy protection in the United States earlier this week, becoming the next leading company in the crypto space to do so.
- In a recentĀ statement, Silvergate explained that BlockFi is not a custodian for the bankās bitcoin-collateralized SEN Leverage loans.
- The California-headquartered firm assured it has no investments in the distressed crypto lender and said its loans continue to perform with āzero losses and no forced liquidations.ā
- Silvergateās financial relationship with BlockFi was limited to less than $20 million of its total client deposits.
- CEO Alan Lane outlined that the banksā platform was designed to āmanage stress and volatility.ā
āThe SEN continues to operate as designed, and our support teams are available 24 hours a day, 7 days a week to help our customers during this period of adversity,ā he added.
- Recent rumors hinted that the digital asset bank had lent funds to BlockFi. Silvergate dismissed the speculation, saying it has been the subject of āfalse and misleading statements.ā
- BlockFi has been coping with severe issues throughout 2022 due to the ongoing bear market. FTX provided a $400 million loan to the company and was close to purchasing it in July.
- Nonetheless, the collapse of SBFās crypto giant intensified BlockFiās problems, and it filedĀ for bankruptcy protection.
The post Silvergate Capital Reveals its Exposure to Bankrupt Crypto Lender BlockFi appeared first on CryptoPotato.
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