- Sailor’s Company Says They Don’t Store BTC in Silvergate Accounts
- But at the same time, MicroStrategy has an outstanding loan of $205 million with a deadline of 2025.
- Even if Silvergate goes bankrupt, the firm refuses to pay it off ahead of schedule.
- The CEO of Tether even stated that his organization had nothing to do with the bank
MicroStrategy and Tether are among the latest companies to distance themselves from Silvergate Capital. The bank was targeted by the federal authorities for its alleged involvement in the FTX scam.
What’s going on with Silvergate Capital?
The bank was one of the key partners of FTX. Due to the bankruptcy of the exchange, Silvergate was on the verge of collapse. The bank suffered record losses last year and cut staff by 40%.
Also, Silvergate stopped paying dividends to reduce costs and stabilize the situation. But this is not the most important thing. The bank has become interested in the federal authorities, who are investigating it for involvement in the FTX and Alameda Research fraud.
Moreover, partners began to refuse bank services. First, the rupture of relations was announced in Circle. Then the founder of MicroStrategy even stated that it was Silvergate that was responsible for the recession in the cryptocurrency market.
All new partners turn away from the bank
Now, MicroStrategy and Tether have announced that they are breaking off relations with Silvergate. The first company noted that it does not store “a single bitcoin” in the accounts of the troubled organization, but It has the bank has an outstanding loan of $205 million with a deadline of the first quarter of 2025.
Tether CEO Paolo Ardoino emphasized, his company has nothing to do with Silvergate. Among other organizations that have publicly “disowned” the bank, we note the following: Coinbase, Circle, Bitstamp, Galaxy Digital and Paxos.
