NEW YORK, Dec. 07, 2022 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Silvergate Capital Corporation (“Silvergate” or the “Company”) (NYSE: SI). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether Silvergate and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On November 15, 2022, market analysts reported that Silvergate’s exposure to FTX, a cryptocurrency exchange currently experiencing a significant liquidity crisis, could be far greater than the Company had previously represented. Specifically, market analysts suggested that FTX deposits constitute a sizable portion of Silvergate’s deposit base and that this is a significant red flag.
On this news, Silvergate’s stock price fell $6.13 per share, or 17.27%, to close at $29.36 per share on November 15, 2022.
Then, on November 17, 2022, research analyst The Bear Cave published a report entitled “The Great Crypto Collapse,” which addressed the exposure of Silvergate and other banks to the recent cryptocurrency collapse. Among other items, the report notes that Silvergate is mentioned in a forfeiture application connected to a money laundering operation, which include allegations—supported by documents purportedly produced by Silvergate—that “(i) During the period of September 2021 to June 2022 ten companies had transferred a total of over $425 million dollars off these cryptocurrency trading platforms into accounts held at different US banks, [and] (ii) The accounts were receiving funds in the same pattern as those . . . used to facilitate the laundering of illicit funds.”
On this news, Silvergate’s stock price fell $3.44 per share, or 10.98%, to close at $27.90 per share on November 17, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
