Investors are trying to decipher the extent of the potential impact on Silvergate Capital from its relationship with FTX.
attempting to "set the record straight" about its role and current state in the crypto ecosystem.
Pressure mounted on the stock after NBC News reported early Tuesday Sen. Elizabeth Warren, D-Mass., along with two Republican colleagues sent a letter to Silvergate CEO Alan LaneSilvergate shares dropped 8.5% on Monday. Silvergate recently disclosed that FTX deposits at the bank represent less than 10% of its total deposits from crypto customers. It has also said it has no outstanding loans or investments in the crypto exchange., that the bank has a resilient balance sheet and ample liquidity should it need to satisfy withdrawal requests. He also repeated this in Monday's letter.
He also wrote that the bank has conducted "extensive due diligence" on FTX and its sister company, the trading firm Alameda Research, and that it takes risk management and compliance "extremely seriously."
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