Silvergate CEO to depart amid ongoing liquidation and investor suits - Mon Wellness

Silvergate CEO to depart amid ongoing liquidation and investor suits

Silvergate is losing CEO Alan Lane and two other top executives as part of

an ongoing wind-down of the once crypto-friendly bank.

Silvergate CEO Alan Lane and two other key executives are set to depart from

their positions amid a wind-down of the once crypto-friendly bank.

Lane and the firm’s chief legal officer, John Bonino, will depart on Aug.

15, while Antonio Martino, chief financial officer of the company, will depart on Sept. 30.

In an Aug. 15 filing to the Securities and Exchange Commission, the bank’s parent company,

Silvergate Capital, said the departures are part of its previously disclosed plan

to wind down operations and voluntarily liquidate Silvergate Bank.

Silvergate noted the three departing executives will not be entitled to any

further compensation under their respective employment agreements but

will receive severance benefits.

The departures come amid a wave of proposed lawsuits involving the bank.

Silvergate and Lane are named in multiple proposed lawsuits mostly

revolving around its alleged role in the misconduct of crypto exchange FTX.

In May, the Texas-based Word of God Church also sued the bank alleging it used $25 million

of church deposits to participate in FTX’s “fraudulent” scheme, adding Silvergate and

Lane had “unparalleled knowledge of the rampant fraud and corporate malfeasance.”

Another proposed class action alleged the bank did not perform adequate due

diligence on the crypto firms it brought on as clients, such as FTX, Alameda and North Dimension.

Other customers, according to the suit, include Binance.

US, Huobi Global, Nexo Capital, and Bittrex.

In March, Silvergate announced it would be winding down its bank’s operations

after suffering $1 billion worth of losses as a consequence of the FTX’s demise,

one of Silvergate’s leading clients.

The bank’s collapse sent reverberations through the crypto ecosystem and

the United States banking sector as it was one of the few regulated financial

institutions providing banking services to crypto firms and exchanges.

Lane’s role will be taken over by Kathleen Fraher, the chief transition officer of the company,

while Martinos’ role will be helmed by the current chief accounting officer of the bank, Andrew Surry.

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