updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131The stock of beleaguered crypto bank Silvergate has taken a new hit as the company weathers intense regulatory inquiries over its FTX association.
Silvergate (NYSE: SI) stock plunged more than 10% in after-hours trading after the crypto-friendly bank revealed it might face regulatory inquiries. Yesterday, Silvergate Capital also announced a delay in filing its annual report due to the inquiry.
The bank’s health has been the subject of concern over the last few months following FTX’s collapse in November. Meanwhile, amid the current drawdown of its stock and regulatory inquiries, Silvergate revealed that its financial health could deteriorate further. The California bank said it might experience challenges with customer retention in addition to any litigation-induced constraints.
Silvergate revealed it would need more than two extra weeks to file its 2022 fiscal year 10-K report. The filing specifies that the regulatory scrutiny the company is currently battling comes from several sources, including Congress, the Department of Justice, and bank regulators. The bank also explained a possible difference between company results and predicted statements. According to the filing:
“There are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to … restrictions on the Company’s business….”
Silvergate’s accounting firm and independent auditors have requested further information. According to the bank, the impact of the ongoing events could affect its ability to continue operations smoothly.
Early last month, reports stated that Silvergate was under probe by the DOJ over its association with FTX. Although the investigative subject appeared speculative at the time, there was no denying Silvergate’s close ties to the defunct crypto exchange.
The DOJ inquiries sought to ascertain whether the crypto bank had any fraudulent relationship with FTX, specifically Silvergate accounts linked to SBF. Furthermore, investigators seek to determine how much the crypto bank knew about FTX’s alleged scheme to defraud investors.
Also in February, reports revealed that Silvergate’s stock was the second-most shorted in the United States. At the time, the bank saw 72.57% of its stocks shorted in the U.S. market, which represented extreme bearish sentiment.
Silvergate Capital stock is down by a massive 85% over the past year and faced heightened selling pressure after FTX’s implosion, with recent inquiries worsening the situation. The decline in the crypto bank’s shares has also come amid the wider tech selloff that happened last year. Several tech stocks and valuations plummeted or became insolvent as the crypto winter raged.
The prices of digital currencies also plunged, with Bitcoin (BTC) slipping beneath the 20K threshold at some point. As of press time, the leading crypto is trading comfortably above $23K.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Goldman Sachs has taken many stances on bitcoin and cryptocurrencies at large in the past, even going as far as providing trading services to its wealthier clients. However, CEO David Solomon does not seem as keen on the digital asset. In a recent interview on CNBC’s SquawkBox, the CEO sidesteps questions regarding bitcoin and his views on it.
David Solomon sat down with CNBC where the CEO shared his thoughts regarding the cryptocurrencies that are shaking up the investing space. When asked if he owned any Bitcoin or Ethereum, Solomon revealed that he did not hold either of these digital aspects, despite Goldman Sachs offering clients exposure to the market.
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The CEO explained that bitcoin has not really been on his radar nor did he know anything about the digital asset. “My view on bitcoin, for example, is that I really don’t know, but it’s really now something individually that’s important to me,” the CEO explained.
Goldman Sachs had jumped on the crypto train back in May after offering investors access to non-deliverable forwards (NDFs). The firm has begun offering bitcoin NDFs at this time and then added Ethereum in June to provide wider coverage for its investors. Later that month, Goldman Sachs partnered with investment firm Galaxy Digital to trade Bitcoin Futures.
When asked if he wants Goldman Sachs clients to go into crypto, Solomon gave an obvious yet evasive answer. He explains that he wants the clients to do what they want. The CEO also added that some Goldman Sachs clients already participate in the space.
BTC drops to $48K | Source: BTCUSD on TradingView.com
Despite the CEO not owning cryptocurrencies himself, the technology associated with the space has not escaped his radar. Instead of bitcoin, the Goldman Sachs CEO said he was rather interested in the digital payments space, mainly how blockchain technology can be beneficial to this space.
“I’m a big believer in the digitalization that is occurring, the disruption that is occurring, in the way financial services are delivered both for individuals and for institutions,” Solomon said.
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As for its reach, he added that this is a massive shift and Goldman Sachs is already trying to get in on it. Additionally, Solomon adds that bitcoin is not the key thing in this scenario. Rather the focus should be on how blockchain can aid in accelerating digitalization in the financial services sector. “I think that’s a big opportunity and we’re excited about that,” said the CEO.
Blockchain technology has already managed to penetrate most industries, with the financial services industry being the most obvious one. Megabanks like JPMorgan and Morgan Stanley have all moved to expand their offerings to clients in the space.
Featured image from CNBC, chart from TradingView.com