See More

Silvergate Downplays ‘Limited’ $2.5M Exposure to Bankrupt Genesis

2 mins
Updated by Paolo Besabella
Join our Trading Community on Telegram

In Brief

  • Silvergate downplayed its $2.5 million exposure to Genesis.
  • The crypto bank previously revealed exposure to bankrupt crypto exchange FTX.
  • Several crypto firms like Decentraland, Cumberland, Mirana have also clarified their ecposure to the crypto lender.
  • promo

Leading crypto bank Silvergate revealed that its exposure to the bankrupt crypto lender Genesis was less than $2.5 million as of Jan. 19, according to an official statement.

Silvergate said the bankrupt lender was not a custodian for its Bitcoin-collateralized SEN Leverage loans. The firm added that it has no outstanding loans or investments in Genesis.

The crypto bank further assured that its exposure to Genesis was minimal, adding that its customers’ assets were securely held.

Previously, Silvergate had downplayed its relationship with the bankrupt crypto exchange FTX. The crypto bank claimed that FTX deposits accounted for less than 10% of its total deposits. However, the crypto bank processed $8.1 billion in withdrawals from clients who feared the exposure could affect the firm.

Meanwhile, Silvergate reported a net loss of $1 billion during the fourth quarter of 2022.

Other Firms With Exposure to Genesis

Besides Silvergate, other crypto firms exposed to the bankrupt lender have begun clarifying the exposure level.

The CEO of crypto exchange ByBit, Ben Zhou, tweeted that his firm’s exposure to Genesis was restricted to its investment arm Mirana. Zhou said Mirana’s $151 million exposure to Genesis was collateralized with $120 million that has been liquidated.

Meanwhile, Mirana’s listed contact on the court filing Jon Allen distanced himself from the filing. According to him, Mirana Asset Management and Mirana Ventures are separate sub-entities. Allen added:

“Mirana Ventures is not a creditor and has no exposure to this. I have no connection to Mirana AM and much of the info including the amount is incorrect. Very sloppy filing.”

Crypto project Decentraland also revealed that it has a credit of around $7.8 million against Genesis. It added that the credit was not a substantial part of its treasury.

Bankruptcy filings also showed that Stellar Network’s Foundation has a $13 million claim against Genesis. The firm reportedly called its exposure level “immaterial.”

Crypto liquidity provider Cumberland said the Genesis bankruptcy filing comprised “misleading and incorrect information.” According to the firm, it had surrendered its cash collateral and liquidated Genesis’ crypto to close an $18 million loan. Cumbersome added that this left a $46,064 balance that was due to it.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Oluwapelumi-Adejumo.png
Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.
READ FULL BIO
Sponsored
Sponsored