Shareholders Foundation, Inc.

Silvergate Capital Corporation (NYSE:SI) Investor Alert: Lawsuit Alleges Violations of Securities Laws

A lawsuit was filed on behalf of investors in Silvergate Capital Corporation (NYSE:SI) shares over alleged securities laws violations.


San Diego, CA -- (SBWIRE) -- 01/13/2023 -- An investor, who purchased shares of Silvergate Capital Corporation (NYSE: SI), filed a lawsuit over alleged violations of Federal Securities Laws by Silvergate Capital Corporation.

Investors who purchased shares of Silvergate Capital Corporation (NYSE: SI) have certain options and for certain investors are short and strict deadlines running. Deadline: February 6, 2023. NYSE: SI investors should contact the Shareholders Foundation at or call +1(858) 779 - 1554.

La Jolla, CA based Silvergate Capital Corporation operates as a bank holding company for Silvergate Bank that provides banking products and services to business and individual clients in the United States. Silvergate Capital Corporation reported that its annual Total Revenue rose from $88.75 million in 2020 to $170.89 million in 2021, and that its Net Income increased from $26.03 million in 2020, to $78.52 million in 2021.

On November 15, 2022, market analysts reported that Silvergate Capital Corporation's exposure to FTX, a cryptocurrency exchange currently experiencing a significant liquidity crisis, could be far greater than the Company had previously represented. Specifically, market analysts suggested that FTX deposits constitute a sizable portion of Silvergate's deposit base and that this is a significant red flag.

Then, on November 17, 2022, research analyst The Bear Cave published a report entitled "The Great Crypto Collapse," which addressed the exposure of Silvergate and other banks to the recent cryptocurrency collapse. Among other items, the report notes that Silvergate is mentioned in a forfeiture application connected to a money laundering operation, which include allegations—supported by documents purportedly produced by Silvergate—that "(i) During the period of September 2021 to June 2022 ten companies had transferred a total of over $425 million dollars off these cryptocurrency trading platforms into accounts held at different US banks, [and] (ii) The accounts were receiving funds in the same pattern as those . . . used to facilitate the laundering of illicit funds."

Shares of Silvergate Capital Corporation (NYSE: SI) declined from $107.89 per share on August 15, 2022, to as low as $18.02 per share on December 13, 2022.

According to the complaint the plaintiff alleges on behalf of purchasers of Silvergate Capital Corporation (NYSE: SI) common shares between November 9, 2021 and November 17, 2022, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 9, 2021 and November 17, 2022, the Defendants failed to disclose to investors that the Company's platform lacked sufficient controls and procedures to detect instances of money laundering, that Silvergate's customers had engaged in money laundering in amounts exceeding $425 million, that, as a result of the foregoing, the Company was reasonably likely to receive regulatory scrutiny and face damages, including penalties and reputational harm, and that, as a result of the foregoing, Defendant's positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Silvergate Capital Corporation (NYSE: SI) have certain options and should contact the Shareholders Foundation.

Shareholders Foundation, Inc.
Christopher Clausen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739

About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.