Silvergate stock plunges after delayed filing raises doubts over future
Silvergate made headlines this week after postponing the filing of its annual 10-K financial report, raising fears of an upcoming bankruptcy filing. The collapse of the cryptocurrency bank could prove costly for the rest of the industry. Within 24 hours after the announcement, Coinbase (NASDAQ:COIN), Circle, Bitstamp, Galaxy Digital and Paxos confirmed that they will scale back their individual partnerships with Silvergate in some capacity. MicroStrategy and Tether joined a number of firms publicly denying any meaningful exposure to the bank. On March 2, Silvergate’s stock plummeted by over 50% on the NYSE.
FTX presentation shows massive shortfall in firms assets
Bankrupt cryptocurrency exchange FTX has revealed a massive shortfall in its digital asset and fiat currency holdings, with billions worth of customer funds missing from both the exchange and its United States-based arm, FTX US. In total, FTX recorded an $8.6 billion deficit across all wallets and accounts while FTX US recorded a deficit of $116 million. Among the week’s headlines, former FTX engineering director Nishad Singh pleaded guilty to charges of wire fraud along with wire and commodities fraud conspiracy. Singhs plea follows a number of Sam Bankman-Frieds close associates reportedly agreeing to cooperate with U.S. prosecutors in recent months.