The CEO of Silvergate Bank, which specializes in serving customers in the fintech and cryptocurrency industries, including the defunct cryptocurrency exchange <a href="https://www.cryptoknowmics.com/news/standard-chartered-predicts-unexpected-bitcoin-fall-after-ftx-fall">FTX</a> and its sibling hedge fund <a href="https://www.cryptoknowmics.com/news/alameda-research-to-repay-two-large-loans-denominated-in-bitcoin-and-ether">Alameda Research</a>, sent a <a href="https://www.sec.gov/Archives/edgar/data/1312109/000131210922000233/ex991-letterfromsilvergate.htm" target="_blank" rel="nofollow noopener">letter</a> to shareholders. The letter assures them of the bank's proper research procedures, risk mitigation, and reserve levels.

https://twitter.com/silvergatebank/status/1599876131033055232
<h2>Silvergate Bank CEO Concerns About FTX and Alameda</h2>
CEO Alan Lane stated that Silvergate completed substantial thorough research on FTX and its associated organizations, notably Alameda Research, both during the induction program and via continuous monitoring, in accordance with the risk mitigation policies and processes and the indicated standards.

He further stated that if the bank sees unusual or possibly alarming behavior in any account, they will look into it and, if necessary, discreetly file a report of suspicious activities in compliance with federal law.
<h2>SEN Functions in Undisturbed Timeframe</h2>
After the FTX crash, Lane said he attempted to address misinformation disseminated by small investors and other exploiters. Therefore he added assurances of risk management and anti-money laundering adherence in the letter to investors.

The CEO of the bank stated that clients retain access to their U.S. dollar deposits whenever they need them and also that the Silvergate Exchange Network ('SEN') has continued to function undisturbed during this whole timeframe.
<h2>Fraudulent Losses in FTX Demise</h2>
According to a class-action petition lodged against the bank last week, Silvergate willfully or carelessly authorized FTX to divert client payments to Alameda Research, which made the bank and its company leaders accomplices in and accountable for fraudulent losses in the FTX failure. Lane also highlighted Silvergate's advantages.

Silvergate Bank CEO Strives to Allay Concerns in Public Letter

The CEO of Silvergate Bank, which specialized in serving customers in the fintech and crypto industries, including FTX and Alameda Research.

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Silvergate Bank CEO Strives to Allay Concerns in Public Letter

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