Lost Money in Silvergate Capital Corp.?
OAKLAND, Calif.--(BUSINESS WIRE)--Jan 5, 2023--
A Silvergate class action lawsuit has been filed on behalf of investors who lost money in Silvergate Capital Corporation (“Silvergate”) (NYSE: SI). Shares of Silvergate plummeted 42% on January 5, 2023, following the company’s disclosure that it was taking a $196 million impairment charge after customers withdrew approximately $8.1 billion of digital-asset deposits during its fourth quarter of 2022. We encourage investors who purchased or acquired SI securities between November 9, 2021, and November 17, 2022, to contact Gibbs Law Group to discuss your legal rights and options.
To speak with an attorney regarding this class action lawsuit investigation,click hereor call (888) 410-2925.
On Thursday, January 5, 2023, Silvergate disclosed that in the third quarter of 2022, total deposits from its digital asset customers declined by roughly 68%, from $11.9 billion to $3.8 billion, prompting the digital currency company to take a $196 million impairment charge, lay off 40% of its workforce, and reassess its customer relationships.
Silvergate’s disappointing fourth-quarter results and announcements follow the recent collapse of FTX, a Silvergate customer, which filed for bankruptcy in November 2022 amidst an $8 billion shortfall and allegations that it misappropriated billions of dollars of customer funds, as reported by the Wall Street Journal. Three U.S. Senators who wrote a letter demanding that Silvergate explain its role in facilitating transfers from FTX later told the Wall Street Journal that an account at Silvergate “appears to be at the center” of FTX’s collapse, according to Cryptoslate.
On November 15, 2022, Marcus Aurelius Research tweeted that “recently subpoenaed Silvergate bank records reveal $425 million in transfers from $SI crypto bank accounts to South American money launderers. Affidavit from investigation into crypto crime ring linked to smugglers/drug traffickers.” Then, on November 17, 2022, The Bear Cave published an article linking Silvergate to the same money laundering operation.
Following the money laundering allegations, Silvergate’s stock dropped 10.7%, closing at $24.90 per share on November 18, 2022. Then on Thursday, January 5 th, Silvergate stock plummeted over 42%, causing significant harm to investors.
What Should Silvergate Investors Do?
If you invested in Silvergate, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Silvergate Corporation has violated federal securities laws.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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CONTACT: EILEEN EPSTEIN CARNEY
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: CLASS ACTION LAWSUIT PROFESSIONAL SERVICES LEGAL
SOURCE: Gibbs Law Group
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PUB: 01/05/2023 08:57 PM/DISC: 01/05/2023 08:57 PM