Silvergate is losing Alan Lane, its chief executive officer, and two other top officials as part of a current closure of the previously crypto-friendly bank.
Alan Lane, the CEO of Silvergate, and two crucial executives are vacating their positions amidst a wind-down of a bank that was once crypto-friendly.
Alan and John Bonino, the organization’s chief legal officer, will leave on August 15. The organization’s chief financial officer (CFO), Antonio Martino, will leave on September 30.
Silvergate Filing Admit Plans to Liquidate Operations
A review of August 15 filing to the Securities and Exchange Commission (SEC) revealed that the parent firm Silvergate Capital attributed the exodus to its exist plans. It had previously intended to conclude operations and willingly liquidate Silvergate Bank.
Silvergate states that the existing officials will not receive additional compensation under their respective service contracts. However, they will get severance pay. The departures are being reported amid numerous lawsuits related to the bank.
Lane and Silvergate have been mentioned in several planned lawsuits, specifically, those focusing on its supposed role in the wrongdoing of FTX, a crypto exchange. In May, the Word of God Church based in Texas sued the bank for allegations of using $25 million of church money to partake in FTX’s deceitful scheme. Additionally, the church claimed Lane and Silvergate had unrivaled knowledge of extensive fraud and corporate misconduct.
Class Action Alleges Bank’s Negligence to Assess Crypto Organizations
According to another suggested class action, the bank failed to carry out enough assessment of the crypto organizations it selected as clients, for instance, Alameda, FTX, and North Dimension. The lawsuit also shows other clients, such as Huobi Global, Binance.US, Bittrex, and Nexo Capital.
In March, Silverstone revealed its intentions to wind down its operations following a loss amounting to $1 billion. The loss was linked to the collapse of FTX, one of the major clients of Silvergate.
The bank’s collapse sent shocks across the crypto ecosystem and the banking sector in the U.S. since it was one of the few legalized financial institutions that crypto companies and exchanges relied on for banking services.
The firm’s chief transition officer, Kathleen Fraher, will take over Lane’s position, while Andrew Surry, the bank’s present chief accounting officer, will take over Martino’s role.
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