The demise of crypto exchange FTX has raised questions about how close Silvergate Capital was to Sam Bankman-Fried’s empire. Silvergate’s stock price has been cut in half this month and is now down nearly 90% year to date. To reassure investors of Silvergate’s stability, the company has issued a number of statements and preannounced some results. It stated that it had sufficient capital to handle withdrawals and that no loans were owed to FTX or Mr. Bankman-Fried. The bank revealed that while deposits were down, volume on its network for crypto investors had increased. It claims to have no losses on bitcoin-backed loans. However, the stock has continued to fall. “This is a fundamental misunderstanding of Silvergate’s role,” Chief Executive Alan Lane said on CNBC Friday.
