Silvergate Capital CEO Alan Lane has slammed “brief sellers” and “different opportunists” for spreading misinformation over the previous couple of weeks — simply to attain themselves a fast buck.

In a Dec. 5 public letter, Lane mentioned there was “loads of hypothesis – and misinformation” being unfold by these events to “capitalize on market uncertainty” prompted partly to FTX’s catastrophic collapse in November.

His crypto-focused financial institution was not too long ago pressured to disclaim one among these so-called FUD (concern, uncertainty and doubt) campaigns final week when there was hypothesis that the agency was uncovered to the bankrupt crypto lender BlockFi.

Lane additionally used the newest letter to the general public as an “alternative to set the file straight” about its funding relationship with FTX, in addition to the corporate’s “sturdy danger administration strategy.”

“Silvergate performed vital due diligence on FTX and its associated entities, together with Alameda Analysis, each in the course of the onboarding course of and thru ongoing monitoring, in accordance with our danger administration insurance policies and procedures.” Learn extra right here: https://t.co/9nAViJOzoi

— Silvergate Financial institution (@silvergatebank) December 5, 2022

Lane reiterated that the agency complies with the Financial institution Secrecy Act and the USA PATRIOT Act, which requires it to watch and scrutinize “each account,” together with FTX and Alameda analysis.

“Silvergate performed vital due diligence on FTX and its associated entities together with Alameda Analysis, each in the course of the onboarding course of and thru ongoing monitoring,” the CEO defined.

The CEO has additionally touted the agency’s “resilient stability sheet and ample liquidity” including that prospects’ deposits are “safely held.”

“Along with the money we supply on our stability sheet, our total funding securities portfolio might be pledged for borrowings on the Federal Residence Mortgage Financial institution, different monetary establishments, and the Federal Reserve Low cost Window – and may in the end be offered ought to we have to generate liquidity to fulfill buyer withdrawal request,” defined Lane.

Block.one and its CEO turn into largest Silvergate Capital shareholders

Silvergate has additionally been the main focus of different hypothesis in latest weeks, together with CFA-issued accountant and former portfolio supervisor Genevieve Roch-Decter, who expressed doubt in a Dec. 1 publish whether or not Silvergate might keep its liquidity place and contemplated whether or not it might undergo from its shut relationship with FTX.

Roch-Decter was additionally involved with Silvergate’s Bitcoin-collateralized mortgage place, which might impression the agency’s stability sheet if Bitcoin’s (BTC) worth continues to fall.

She additionally expressed fear that ought to the agency’s Silvergate Alternate Community — a community utilized by extremely used crypto exchanges to ship U.S. {dollars} and Euros between accounts — was compromised, it might “drag down all the system.”

The Silvergate Alternate Community permits the financial institution’s digital foreign money and institutional investor shoppers to ship U.S. {dollars} and euros between their Silvergate accounts and the accounts of different Silvergate shoppers.

Right here’s a graphic the corporate shared in February: pic.twitter.com/RKGLq1ZTSg

— Genevieve Roch-Decter, CFA (@GRDecter) November 30, 2022

Lane confirmed within the assertion that Silvergate “prospects proceed to have entry to their U.S. greenback deposits once they want them and that Silvergate Alternate Community (SEN) has continued to function uninterrupted all through this era.”

“We deliberately carry money and securities in extra of our digital asset-related deposit liabilities,” the CEO added.

Lane’s public letter did little to stem the bleeding of Silvergate’s (SI) share worth, which fell 8.49% to $24.24 on the New York Inventory Alternate (NYSE) on Monday, according to MarketWatch.

Silvergate’s inventory is now down 52.43% during the last thirty days and decreased 85.34% during the last 12 months.