Crypto Bank Silvergate Capital Surges on Lack of FTX Exposure
The lender said it has no outstanding loans nor investments in the bankrupt crypto exchange.
Nov 11, 2022 at 10:46 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/CGM4PVNNIVB7HBN4BRUOGQLJYY.jpg)
Silvergate Capital (SI) is sharply higher in after-hours action on Friday after disclosing details of its relationship with failed crypto exchange FTX.
FTX's deposits with Silvergate represent less than 10% of the $11.9 billion in total deposits from all digital asset customers, said the bank. While that appears to mean an amount of $1 billion or more, those are deposits, meaning FTX is a creditor.
Silvergate, however, said it has no outstanding loans or investments to FTX, nor is FTX a custodian for any of the bank's bitcoin-collateralized SEN Leverage loans.
"To be clear, our relationship with FTX is limited to deposits," said Silvergate CEO Alan Lane.
Under pressure all week on worries of exposure to FTX, Silvergate shares are higher by 18.8% in after-hours trade on Friday evening.
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Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.