Silvergate Capital, which was once a major crypto business, is reportedly parting ways with its CEO Alan Lane as well as two additional prominent executives who will probably be leaving their current positions as the previously crypto-friendly bank winds down.
Silvergate CEO to Left on Aug. 15
Silvergate Capital, the bank’s parent company, stated in an August 15 filing to the Securities and Exchange Commission that the departing employees are part of its previously announced strategy to close down operations and voluntarily dissolve Silvergate Bank.
CFO to Leave on Sept. 10
In particular, Lane and the company’s chief legal officer, John Bonino, left on August 15 while the chief finance officer, Antonio Martino, will leave on September 30. They are going to get the severance benefits rather than further remuneration per their respective contractual arrangements.
Kathleen Fraher, the corporation’s chief transition officer, will be taking over Lane’s post, while Andrew Surry, the bank’s current chief accounting officer, will be taking over Martinos’.
Charges Against Silvergate
Notably, Silvergate and Lane are implicated in a number of potential legal proceedings, the majority of which revolve around their claimed role in the wrongdoing of crypto exchange FTX.
The resignations come amid a flurry of suggestions for charges against the financial institution. For instance, the Texas-based Word of God Church filed a lawsuit against the bank in May, alleging that it utilized $25 million in church deposits in order to take part in FTX’s “fraudulent” plan, and that Silvergate and Lane had “unparalleled knowledge of the rampant fraud and corporate malfeasance.”
Lack of Due Diligence
FTX, Alameda, and North Dimension were among the cryptocurrency companies the bank signed up as clients, but according to other potential class action, the bank did not conduct sufficient due diligence on these companies.
The Corporation had publicly announced that it is winding down business and voluntarily liquidating its bank, Silvergate Bank, so as to comply with appropriate regulatory regulations. The voluntary winding down came shortly after the crypto-focused bank suspended services on one of its primary offerings, Silvergate Exchange Network.