More and more partners are turning their backs on Silvergate
Silvergate continues to be in financial trouble.
Silvergate keeps running into financial trouble. A massive plunge in the stock price continues to fuel the negative spiral.
After Silvergate's stock fell more than 40 percent, more players in the crypto sector pulled away from the bank. The crypto service platform Ledger X and the trading platform Coinbase have halted payments with the company.
The crypto exchange Crypto.com permanently suspended US dollar transfers via Silvergate. A number of other major players followed suit. Circle, Paxos, Galaxy, Gemini, Bitstamp and CBOE also stopped doing business with the bank.
Silvergate is one of the top banking partners for the crypto sector. The firm has been financially strained since the collapse of FTX. A late filing of its annual report had investors and stakeholders alarmed.
The bank also reported a net loss of $1 billion in Q4 2022. According to Bloomberg, Silvergate is poised to be sued by U.S. authorities. The reason, per the company, is its involvement in the FTX and Alameda Research frauds.
MicroStrategy CEO Michael Saylor weighs in to defend Silvergate. "We will continue to do business with Silvergate," he told CNBC. Companies like FTX, Alameda, Voyager and BlockFi were driven under because they were "misconstructed," he said. "But Silvergate was essentially a responsible bank," Saylor added.
