CRYPTOCURRENCY
Federal Reserve Gives Consent Order to Silvergate Capital Corporation for Voluntary Self-Liquidation
The Federal Reserve Board announced a consent order against Silvergate Capital Corporation and its subsidiary Silvergate Bank on Thursday, providing the necessary regulatory supervision for the financial institution's voluntary self-liquidation.
Binance Accused of Commingling Customer Funds and Revenue, Says Reuters Report
Binance, the world's largest cryptocurrency exchange, is facing allegations of having commingled customer funds with company revenue in 2020 and 2021, violating U.S. financial rules that mandate the segregation of customer money, according to a special report by Reuters.
US Bank Failures Shock Regulators
The New York Department of Financial Services and the US Federal Reserve Board have published their internal reviews on the handling of Signature Bank and Silicon Valley Bank's failures. The string of bank failures, including Silvergate Bank's voluntary liquidation, has prompted regulators to re-evaluate their supervision.
Blockchain Association Seeks Information on De-banking of Crypto Companies
The Blockchain Association has filed Freedom of Information Law requests to the Federal Housing Finance Agency and the New York Department of Financial Services, seeking more information on the de-banking of crypto companies after the closure of Signature Bank and the failure of Silvergate Bank.
MicroStrategy Acquires More Bitcoin Amid Market Recovery
MicroStrategy has acquired 6,455 Bitcoin for $150 million and repaid its $205 million loan to Silvergate at a 22% discount, according to a filing with the US SEC. The company now holds a total of 138,955 BTC, bought for $4.1 billion at an average price of $29,817 per coin. MicroStrategy also sold class A common stock worth $500 million and acquired BTC between Feb. 16, 2023 and March 23, 2023.
Kraken Halts ACH Deposits and Withdrawals via Silvergate
Kraken has notified its users that it will no longer support ACH deposits and withdrawals via Silvergate starting from March 27, citing difficulties with the automated clearing house. Kraken has advised its users to use alternative funding options until ACH funding is available again.
Australian Bankers Association cost of living probe shows bank pressure
The Australian Bankers Association (ABA) has launched a cost of living review to determine how the COVID-19 epidemic, global supply chain restrictions, geopolitical tensions, and other factors have raised Australia's already high cost of living. The research will examine Australia's economic policies and ways to cut living costs.
Binance converts remaining $1 billion in Industry Recovery Initiative to native crypto amidst concerns around stablecoins
Binance co-founder and CEO, Changpeng Zhao, announced on March 13 that the exchange will be converting the remaining $1 billion funds in its Industry Recovery Initiative to native crypto amid concerns surrounding stablecoins. This decision was made following the depegging of the USD Coin (USDC) stablecoin caused by the failure of three major crypto-friendly banks - Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank.
Silvergate Bank Voluntary Liquidation Sparks Controversy in Crypto Industry
The recent announcement of Silvergate Bank’s voluntary liquidation has led to a heated debate in the crypto industry, with some lawmakers labeling the sector as “risky” and “volatile.” Crypto executives and commentators have criticized these remarks and suggested that government investigations and legal attacks hastened the bank’s collapse. As Silvergate winds down, some crypto firms are seeking alternative banking partners amid concerns of regulatory crackdowns and proposed tax law changes.
Silvergate Reports $1B Deficit In Q4 2022
Silvergate Bank reported a $1 billion net loss attributable to common shareholders in Q4 2022. The FTX and Alameda Research class-action lawsuit is against the corporation. Silvergate CEO Alan Lane said the business still believes in the digital asset market and would keep its financial sheet liquid.