Silvergate Capital’s Alan Lane criticises “short sellers” for spreading wrong information  | The Financial Express

Silvergate Capital’s Alan Lane criticises “short sellers” for spreading wrong information 

According to Cointelegraph, Lane stated the presence of “plenty of speculation – and misinformation” being spread by the concerned parties to “capitalise on market uncertainty” caused due to FTX’s collapse in November, 2022

Silvergate Capital’s Alan Lane criticises “short sellers” for spreading wrong information 
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Alan Lane, CEO, Silvergate Capital, has criticised “short sellers” and “other opportunists” on account of giving misinformation in the past few weeks, as reported by Cointelegraph.

According to Cointelegraph, through a December 5, 2022, public letter, Lane stated the presence of “plenty of speculation – and misinformation” being spread by the concerned parties to “capitalise on market uncertainty” caused due to FTX’s collapse in November, 2022. Lane utilised the latest letter to the public to focus on an “opportunity to set the record straight” about its investment relationship with FTX, as well as the company’s “robust risk management approach.” 

“Silvergate conducted significant due diligence on FTX and its related entities including Alameda Research, both during the onboarding process and through ongoing monitoring. In addition to the cash we carry on our balance sheet, our entire investment securities portfolio can be pledged for borrowings at the Federal Home Loan Bank, other financial institutions, and the Federal Reserve Discount Window – and can ultimately be sold should we need to generate liquidity to satisfy customer withdrawal request,” Lane highlighted. 

On the basis of information by Cointelegraph, in recent weeks, Silvergate has been at the receiving end of other forms of speculation, including CFA-oriented accountant and previous portfolio manager Genevieve Roch-Decter, who expressed concerns through a December 1, 2022, post. It stated whether Silvergate could have continued with its liquidity position and pondered whether it could be at the suffering end due to its connection with FTX.

Moreover, Cointelegraph noted that Lane gave the confirmation that Silvergate “customers continue to have access to their U.S. dollar deposits when they need them and that Silvergate Exchange Network (SEN) has continued to operate uninterrupted throughout this period.” It is believed that Silvergate’s stock is currently down 52.43% in the period of last 30 days, and fell down 85.34% over the last 12 months.

(With insights from Cointelegraph)

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First published on: 06-12-2022 at 17:13 IST