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News

Silvergate Claims Limited Exposure To Genesis

January 22, 2023 - Around 2 mins mins to read

Key Points:

  • In line with Genesis’s recently reported bankruptcy case, Silvergate Capital released an update on its operations.
  • According to the company, neither Genesis nor any of its assets serve as a custodian for the bitcoin-collateralized SEN Leverage loans made by the company.
  • The company said that its exposure to Genesis is minimal and customers’ deposits are and have always been safely held.
In a press statement issued on January 20, Silvergate Capital, the parent company of Silvergate Bank, disclosed a small exposure to Genesis Global Capital.
Silvergate Claims Limited Exposure To Genesis

In line with the recently reported bankruptcy case by Genesis Global Holdco, LLC and its subsidiaries Genesis Global Capital LLC and Genesis Asia Pacific PTE LTD, the leading provider of cutting-edge financial infrastructure solutions to the digital asset market released a business update.

Less than $2.5 million was Silvergate’s deposit connection with Genesis as of December 31, 2022 and January 19, 2023. According to the statement, Silvergate has no outstanding loans to or interests in Genesis, and Genesis is not a custodian for its bitcoin-collateralized SEN Leverage loans.

Similar to how Silvergate minimized its connection to Sam Bankman-Fried’s FTX exchange following that company’s bankruptcy in November. Less than $1.2 billion, or less than 10% of its total deposits, were FTX deposits at the time, according to Silvergate. Nevertheless, the company was charged with being the main cause of FTX’s demise.

Silvergate Claims Limited Exposure To Genesis

The company further affirms that customer deposits are still secured and unrelated to Genesis:

“While this continues to be a turbulent time in the digital asset industry, Silvergate’s exposure to Genesis is minimal and customers’ deposits are and have always been, safely held.”

Whether Genesis’ most recent failure will have such profound long-term ramifications is still up in the air. Recently, its crypto lending division filed for chapter 11 bankruptcy.

Genesis owes its biggest lenders more than $3.5 billion, including the Stellar Development Foundation, Cumberland DRW, MoonAlpha (the company that runs Babel Finance), Mirana (the investment division of ByBit), and VanEck’s New Finance Income Fund.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

FTX

Genesis

Sam Bankman-Fried

Silvergate

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Silvergate Claims Limited Exposure To Genesis

Key Points:

  • In line with Genesis’s recently reported bankruptcy case, Silvergate Capital released an update on its operations.
  • According to the company, neither Genesis nor any of its assets serve as a custodian for the bitcoin-collateralized SEN Leverage loans made by the company.
  • The company said that its exposure to Genesis is minimal and customers’ deposits are and have always been safely held.
In a press statement issued on January 20, Silvergate Capital, the parent company of Silvergate Bank, disclosed a small exposure to Genesis Global Capital.
Silvergate Claims Limited Exposure To Genesis

In line with the recently reported bankruptcy case by Genesis Global Holdco, LLC and its subsidiaries Genesis Global Capital LLC and Genesis Asia Pacific PTE LTD, the leading provider of cutting-edge financial infrastructure solutions to the digital asset market released a business update.

Less than $2.5 million was Silvergate’s deposit connection with Genesis as of December 31, 2022 and January 19, 2023. According to the statement, Silvergate has no outstanding loans to or interests in Genesis, and Genesis is not a custodian for its bitcoin-collateralized SEN Leverage loans.

Similar to how Silvergate minimized its connection to Sam Bankman-Fried’s FTX exchange following that company’s bankruptcy in November. Less than $1.2 billion, or less than 10% of its total deposits, were FTX deposits at the time, according to Silvergate. Nevertheless, the company was charged with being the main cause of FTX’s demise.

Silvergate Claims Limited Exposure To Genesis

The company further affirms that customer deposits are still secured and unrelated to Genesis:

“While this continues to be a turbulent time in the digital asset industry, Silvergate’s exposure to Genesis is minimal and customers’ deposits are and have always been, safely held.”

Whether Genesis’ most recent failure will have such profound long-term ramifications is still up in the air. Recently, its crypto lending division filed for chapter 11 bankruptcy.

Genesis owes its biggest lenders more than $3.5 billion, including the Stellar Development Foundation, Cumberland DRW, MoonAlpha (the company that runs Babel Finance), Mirana (the investment division of ByBit), and VanEck’s New Finance Income Fund.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

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