Silvergate Capital announced a business update, citing that its deposit relationship with BlockFi Inc. is limited to less than $20M of its total deposits from all digital asset customers as of November 28, 2022. BlockFi is not a custodian for Silvergate’s bitcoin-collateralized SEN Leverage loans, which to date have continued to perform as expected with zero losses and no forced liquidations. Silvergate has no investments in BlockFi. ilvergate maintains a first priority lien and security interest in a cash collateral account, which contains $10Mfor the benefit of Silvergate to support ACH services provided to BlockFi. "As the digital asset industry continues to transform, I want to reiterate that Silvergate’s platform was purpose-built to manage stress and volatility," said Alan Lane, Chief Executive Officer of Silvergate. "The SEN continues to operate as designed, and our support teams are available 24 hours a day, 7 days a week to help our customers during this period of adversity."
Published first on TheFly
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