Crypto Bank Silvergate Claims That Their Exposure to Blockfi Digital Asset Deposits is Less Than $20 Million

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Last Updated on November 29, 2022 by Bitfinsider

In a late-Monday press release, Silvergate Capital (SI) stated that fewer than $20 million of its total deposits from all digital asset customers as of Nov. 28 were related to BlockFi, which on Monday sought Chapter 11 bankruptcy protection.

In the statement, Slivergate said: “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.”

The ACH (Automated Clearing House) services Silvergate provided to BlockFi are covered by a $10 million first priority lien and security interest on a cash collateral account, according to Silvergate.

Following the demise of FTX, which purportedly financed the former a staggering $250 million in FTT tokens, BlockFi is the most recent cryptocurrency company to go under.

Silvergate asked visitors to visit its website directly for factual information, claiming that the bank recently “has been the subject of false and misleading statements.”

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