- Silvergate’s CEO and two executives have left the bank amidst the ongoing liquidation process.
- The departure is part of the bank’s liquidation process.
- The CEO and the executives will receive their severance package, but no additional compensation stated in their employment contract will be made to them.
Silvergate’s CEO and top executives Departs Company
Silvergate, a crypto-friendly company undergoing voluntary liquidation, faces a significant challenge as CEO, Alan Lane, and two executives depart.
The executive’s departure signals the latest development in the ongoing liquidation process after the bank shut down in March.
Alongside Alan Lane, the company’s legal officer, John Bonino, stepped down on August 15th.
The chief financial officer, Antonio Martino, will also step down from his position on September 30th.
The departure was announced in a filing made by the parent company of the collapsed bank, Silvergate Capital, to the US Securities and Exchange Commission on August 15th.
Silvergate’s chief risk officer, Kathleen Fraher, will step up as an interim CEO as the company pursues liquidation.
The Chief accounting officer, Andrew Surry, will now occupy the chief financial officer’s position.
According to the filing, the departure is part of the voluntary liquidation process.
The departing executives will receive their severance benefits, but no extra compensation stated in their employment agreement from the company will be made to them.
The executives are entitled to the same benefits offered to Silvergate employees during the liquidation.
During the bank’s turbulent experiences, over 400 employees were laid off.
The collapse of Silvergate was triggered by a large volume of customer withdrawals made during the collapse of FTX.
It was facilitated by the market reaction to the crash of FTX last year. FTX and its sister company, Alameda Research, had accounts on Silvergate.
In addition to the catastrophic event in the crypto markets, Silvergate regulatory problems also played a massive role in the bank’s downfall. The bank was a prominent lender to crypto companies like Coinbase, Circle, and Gemini. This resulted in a narrow navigation of the regulatory landscape.
A successful attempt to sell debt securities and loan billions from the Federal Home Loan Bank led to criticism and scrutiny from US senators.
US lawmakers criticized Alan Lane for his poor actions and the company’s relationship with FTX.
In March, Silvergate announced its plan to liquidate the bank.
“Given recent industry and regulatory developments, Silvergate believes that an organized winding down of its banking operations and a voluntary liquidation is the most suitable course of action,” the official statement reads.
The bank’s downfall in March was followed by other crypto-friendly banks like Silicon Valley Bank (SVB) and Signature Bank.
The crash of the top three crypto-friendly banks affected the crypto and financial industry. They were the top banks for venture-backed tech startups, and they crashed within a week.
Silicon Valley Bank was very popular amongst venture capitalists and tech startups. The federal government guaranteed deposits for all Silicon Valley Bank and Signature depositors.
2023 has been a tough year for the crypto industry.
