Silvergate CEO Assures Investors of the Safety of their Assets

Since the FTX bankruptcy filing in the United States, Silvergate Capital which is somewhat connected to the now-beleaguered crypto firm and has been under major scrutiny has released a public letter to address the uncertainties of customers thereby setting a good record.

According to the released letter on December 5, Alan Lane Silvergate’s CEO assured its customers stating its role in the digital assets ecosystem. Likewise, Alan emphasized the unending role of the firm to ensure customers act in accordance with the Bank Secrecy Act and the USA Patriot Act.

Despite the volatile environment, the Silvergate Exchange Network (SEN) has continuously operated without being interrupted which is a plus for the firm.

Similarly, the company has taken it upon itself to assist law enforcement agencies to identify bad actors in the space. With this, it has invested in models that will ensure proper monitoring of customers’ accounts while fulfilling its regulatory obligations. 

Silvergate Assures it Suffers no Liquidity Crunch

Additionally, while reassuring customers Alan said all of its investment portfolios could be pledged for borrowing from financial institutions including the Federal Home Loan and the Federal Reserve Discount Window should it need to generate liquidity to meet users’ withdrawal requests.

Meanwhile, the leading crypto bank has conducted due diligence on FTX and its sister firm Alameda Research. The diligence was conducted during the onboarding process and all through the ongoing monitoring. However, it was done in accordance with Silvergate’s risk management policies as well as its procedures.

Interestingly, the crypto bank will continually seek to comply with all relevant rules and regulations that will give it a soft landing as well as promote the company. Also, customers’ transactions are and will remain safe as far as the company is concerned.

In the meantime FalconX, a crypto prime brokerage firm has severed its ties with Silvergate after the collapse of FTX even though Alan has claimed severally that its exposure to FTX was only limited to deposits.

Meanwhile, Silvergate acquired Facebook’s Diem stablecoin project together with its other assets earlier in the year.