Silvergate Bank Announces It Will Cease Operations

Published on:

The Grayscale CEO said the ETF decision could be approved in the third quarter; Silvergate Bank announces it will cease operations; Alameda Research, sued Voyager last January for a $445 million loan repayment.

The Grayscale CEO said the ETF decision could be approved in the third quarter

According to Bloomberg’s report, Grayscale Investments expects to file its lawsuit with the US Securities and Exchange Commission for refusing to convert its Bitcoin trust into an ETF by the third quarter of the year.

After the hearing, the share price of the company’s product traded under the GBTC code rose for the second day. After the discussions about the case, an 11% increase in share value was noticed.

Grayscale CEO Michael Sonnenshein used the following statements in an interview with Bloomberg TV:

“As an organization we are truly grateful to have this case heard in DC. The response from investors has been very positive.”

Sonnenshein also said that if the case fails, the decision will be taken to the Supreme Court.

The SEC rejected it for manipulation.

The SEC rejected Grayscale’s proposal to convert the Bitcoin trust into a spot Bitcoin ETF last June, citing fraud and manipulation in the crypto markets.

Grayscale filed a lawsuit against the regulator, saying the decision was arbitrary and discriminatory. Because the SEC had previously approved an ETF focused on Bitcoin futures.

The case is seen as a pretty big test for the SEC, which has taken a rather aggressive stance on cryptocurrency exchanges. The SEC reiterates that at every turn, the majority of digital assets are a security that must be registered.

Read more:  Bitsgap vs Shrimpy: Which One Is The Bot For You?

Silvergate Bank announces it will cease operations

According to Bloomberg’s report, Silvergate plans to shut down the bank’s operations after the deep crisis in the crypto markets depleted the company’s financial strength.

In the statement, it was shared that the bank will be liquidated voluntarily in accordance with the regulatory process.

In the statement made by the company, the following statements were made:

“Following recent industry and regulatory developments, Silvergate Bank believes liquidation of operations is the best thing going forward”

Silvergate collapsed amid regulators’ scrutiny and an investigation into its ties to FTX and Alameda. Although the company has stated at every opportunity that it has done nothing wrong, its problems have increased after closing its payment network.

The company, in a statement to its investors on March 1, emphasized that it is reviewing whether the bank will continue. Silvergate Bank has become the first bank to go bankrupt in the US since 2020, according to the FDIC’s report.

Shares of the company had fallen significantly after the filing of the 10-K report was delayed.

For now, it is unclear what effect Silvergate’s closing of the shutters will have on the cryptocurrency industry. Analysts are worried that the collapse of Silvergate created a butterfly effect following the collapse of cryptocurrency exchange FTX.

Alameda Research, sued Voyager last January for a $445 million loan repayment

FTX’s sister company, Alameda Research, sued Voyager last January for a $445 million loan repayment.

Judge John Doerse has upheld the settlement between Voyager Digital and FTX, following the postponement of the expected FTX hearing in bankruptcy court. The judge also confirmed Katherine Stadler, who is among the shareholders of the law firm Godfrey & Kahn, as an auditor in the FTX case.

Read more:  What is Slothana (SLOTH) Memecoin?

The unsecured creditors’ committee was also part of the deal between the two companies.

The agreement revealed how intertwined some digital asset firms actually are.

However, the US court approved the sale of Voyager to Binance US. The US Securities and Exchange Commission and the Justice Department were strongly opposed to the sale.

It was stated that Binance US will buy Voyager Digital for 1 billion dollars.

Bankruptcy judge Michael Wellis announced that the company will be allowed to be sold to Binance US so that Voyager can continue its payment plans in a healthy way.

The SEC and the Department of Justice claimed that this sale could undermine regulators’ efforts to regulate cryptocurrency markets.