A wind-down of the formerly crypto-friendly bank is underway as Silvergate CEO Alan Lane and two other top executives prepare to leave their posts. Lane and John Bonino, the company's chief legal officer, will leave on August 15, and Antonio Martino, the organization's chief finance officer, will leave on September 30. The bank's parent firm, …
A wind-down of the formerly crypto-friendly bank is underway as Silvergate CEO Alan Lane and two other top executives prepare to leave their posts. Lane and John Bonino, the company’s chief legal officer, will leave on August 15, and Antonio Martino, the organization’s chief finance officer, will leave on September 30.
The bank’s parent firm, Silvergate Capital, stated in a filing to the Securities and Exchange Commission on August 15 that the departures are a part of its previously disclosed strategy to wind down operations and voluntarily dissolve Silvergate Bank. The three retiring executives, according to Silvergate, will receive severance payments but will not be eligible for any further salary under their respective employment agreements. The resignations coincide with a slew of bank-related lawsuits that have been filed. Several lawsuits are being considered, most of which center on Silvergate and Lane’s alleged involvement in the unethical behavior of the cryptocurrency exchange FTX. In May, the Texas-based Word of God Church filed a lawsuit against the bank, claiming Silvergate and Lane had “unparalleled knowledge of the rampant fraud and corporate malfeasance.” The church claimed the bank utilized $25 million of church deposits to participate in FTX’s “fraudulent” operation. Another proposed class action claimed that the bank did not sufficiently investigate the cryptocurrency companies it took on as clients, including FTX, Alameda, and North Dimension. Other customers, according to the suit, include Binance.US, Huobi Global, Nexo Capital, and Bittrex.
Silvergate said in March that it will be closing down its bank’s activities after sustaining losses totaling $1 billion as a result of the collapse of FTX, one of Silvergate’s top clients. The bank was one of the few regulated financial organizations offering banking services to crypto companies and exchanges, hence its failure had an impact on both the cryptocurrency ecosystem and the US banking industry. Lane’s position will be filled by Kathleen Fraher, the company’s chief transition officer, and Martinos’ position will be handled by Andrew Surry, the bank’s current chief accounting officer.
Risk Disclaimer:
Please note that this article does not offer any instructions or suggestions regarding investment decisions. Therefore, it is essential that you carefully evaluate your financial situation and conduct thorough analysis, or seek advice from a qualified professional, before making any investment decisions.
