Mar 03, 2023
Coinbase Cuts Ties with Silvergate Bank Amid Investigation
Coinbase, a leading cryptocurrency exchange, recently announced that it has terminated its partnership with Silvergate Bank as its U.S. dollar banking partner. This decision comes in light of an ongoing investigation into the bank, and in an abundance of caution. Coinbase will instead facilitate institutional client cash transactions for its Prime customers with Signature Bank, its other banking partner.
The termination of the partnership has caused a significant drop in the stocks of Silvergate Bank, which were already under stress due to a delay in the filing of their annual 10-K report. JPMorgan (JPM) has downgraded Silvergate Capital (SI) to “Underweight” from “Neutral” due to insolvency fears.
A 10-K report is a document required by the Securities and Exchange Commission that provides a comprehensive overview of a company’s business and financial condition. Silvergate Bank had announced that it would need an additional two weeks to complete the report for the 2022 fiscal year.
The decision will not impact payment instructions in GBP or euro.
The troubles for the fintech bank began with the downfall of FTX crypto exchange. Silvergate Bank, which is popularly known as the crypto bank due to its many crypto partners, is currently the subject of an investigation from the U.S. Department of Justice over its involvement in the FTX collapse. The investigation is centered around the former FTX CEO Sam Bankman-Fried’s account with the bank.
In another civil lawsuit, Silvergate Bank and its CEO Alan Lane have been accused of “aiding and abetting” a “multibillion-dollar fraudulent scheme orchestrated by Sam Bankman-Fried (SBF)” and two of his entities, FTX and Alameda Research.
The ongoing investigations and termination of partnerships have caused Silvergate to become one of the most shorted stocks in the current market. According to the Financial Industry Regulatory Authority, over 72% of Silvergate Capital Corp stock was shorted by the end of January.
The crypto space is growing at an unprecedented rate, and the demand for Non-Fungible Tokens (NFTs) has skyrocketed. As more people invest in NFTs, the need for efficient NFT marketing and promotion has increased exponentially. With the rise of web3, the need for a reliable web3 agency that specializes in NFT marketing and promotion is more important than ever.
At NFT Marketing Agency, we understand the complexities of the web3 space and the importance of NFT promotion. We specialize in providing comprehensive NFT marketing services, from Twitter NFT marketing to helping you sell NFTs. Our team of experienced professionals will work with you to create a custom NFT marketing strategy that is tailored to your needs. Whether you are just getting started in the world of NFTs or are an experienced investor, we can help you maximize your returns and reach your goals. Contact us today to learn more about how we can help you promote and sell your NFTs.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
