Silvergate claims BlockFi exposure is limited to less than $20M of its total deposits
Silvergate Capital Corporation (NYSE:SI), a provider of financial infrastructure solutions to the digital asset industry, says its deposit relationship with BlockFi Inc. is limited to less than $20 million of its total deposits from all digital asset customers as of November 28, 2022.
This happens shortly after BlockFi filed for Chapter 11 bankruptcy.
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.
Silvergate maintains a first priority lien and security interest in a cash collateral account, which contains $10 million for 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.”
