Block.one sells stake in Silvergate Bank

On March 8, the EOS-backed company Block.one объявила the sale of Silvergate Bank’s shares.

“Although we are disappointed with this outcome, we remain confident that banks and other financial institutions operating in the digital asset and cryptocurrency sectors have good opportunities to use technology to expand the reach of both traditional financial services and the growing digital asset economy,” the statement said.

The company explained that they exited the position after the postponement of Silvergate Capital Corporation’s deadlines for filing its annual report with the SEC and the closure of the SEN payment network.

In the autumn of 2022 Block.one and its co-founder Brendan Blumer acquired, respectively, 9.3% and 7.5% of the bank’s shares in a digital-asset-friendly bank.

In February 2023, it emerged that U.S. authorities are investigating the link between Silvergate Bank and the victims of the FTX and Alameda Research collapse. Moody’s downgraded the bank’s rating due to a deterioration of its baseline credit assessment.

Major crypto firms such as Tether, Galaxy Digital, Paxos, Gemini, Coinbase and Bakkt distanced themselves from the organisation.

As reported on March 8, Silvergate Capital Corporation объявила its intention to wind down operations and liquidate the bank.

Karine Jean-Pierre, the White House spokesperson, said that the Biden administration is monitoring the situation around Silvergate and cryptocurrency companies.