White House eyes Silvergate in crypto fallout

[ad_1]

Pastel Network co-founder Anthony Georgiades said Silvergate Bank’s shutdown of crypto payments could be the industry’s “tip of the iceberg”.

The Biden administration is eyeing Silvergate Capital after the La Jolla, Calif.-based crypto bank issued a going concern warning and announced the shutdown of its exchange network last week.

In her Monday briefing, White House press secretary Karine Jean-Pierre said she wouldn’t comment specifically on Silvergate, but “we are aware of the situation and are monitoring reports.”

BITCOIN REACHES TWO-WEEK LOW, SILVERGATE UNFOLDS

White House press secretary Karine Jean-Pierre told reporters on Monday that the Biden administration was aware of Silvergate and the surveillance reports. (AP Photo/Susan Walsh/AP Newsroom)

Jean-Pierre observed that Silvergate was the latest cryptocurrency company to experience significant issues. “In recent weeks, banking regulators have issued guidance on how banks should protect themselves from the risks associated with crypto,” she said.

Last week, Silvergate Bank’s parent company announced that it would not be filing its annual financial report with the Securities and Exchange Commission on time.

Silvergate said it needed more time to allow its external auditors to complete certain procedures, including a review of unrecorded adjustments and an assessment of the effectiveness of the company’s internal control over reporting. financial.

IMF AGAINST LEGAL CRYPTO BID, ISSUES ACTION PLAN

The company sold additional debt securities in January and February 2023 and expects to incur further losses.

Silvergate said the losses could leave the bank less than well capitalized.

The company posted a net loss of $1 billion in the fourth quarter, compared to a net profit of $04.6 billion a year earlier.

FTX FALLOUT HITS SILVERGATE, BITCOIN

Ticker Title Last change Change %SI SILVERGATE CAPITAL 5.21 -0.20 -3.70%

Silvergate’s going concern warning sent bitcoin to its lowest level in two weeks.

A day later, some crypto companies – prompted by news about the bank – began to move away from Silvergate.

Coinbase, for example, said it stopped “accepting or initiating payments” to or from the bank “in light of recent developments and out of an abundance of caution.”

Paxos and Galaxy, among others, have announced similar milestones.

“As you know, this is a president who has repeatedly called on Congress to take action to protect ordinary Americans from the risk posed by digital assets,” and he will continue to do so,” added Jean- Rock.

GET FOX BUSINESS ON THE ROAD BY CLICKING HERE

Additional reporting by Aislinn Murphy.

[ad_2]