Silvergate Bank is in the midst of winding down its operations after reporting $1 billion worth of losses related to the collapse of FTX, which was once an esteemed client. The crypto-friendly bank also faces a series of lawsuits, and now, has announced the departure of C-level executives at the helm of operations.
In an Aug. 15 filing with the U.S. Securities and Exchange Commission (SEC), Silvergate’s parent company disclosed the departure of the bank’s CEO Alan Lane, Chief Legal Officer John Bonino and Chief Financial Officer Antonio Martino.
The filing stated that neither Lane, Bonino nor Martino were departing as a result of any dispute or disagreement with the firm itself.
Lane and Bonino are set to depart on Aug. 15, while Martino will leave his role on Sept. 30. After their exits, none of the executives will be entitled to any further compensation under their employment contracts, but will receive severance benefits.
Kathleen Fraher, the chief transition officer of the company, will take over as principal executive officer after Lane’s departure, but the firm does not plan to appoint anyone to permanently fill the roles of the executives in light of the ongoing liquidation.
Silvergate announced it would be entering a voluntary liquidation in March, and plans to repay all client deposits in full after it resolves how best to preserve the residual value of its assets. Silvergate’s stock price plummeted by 44% in after-hours trading on the day the news was made public.
Since then, the bank has been named in a number of lawsuits, including two class action lawsuits, one of which alleges the bank failed to perform proper due diligence on some of its clients, including FTX, Alameda Research, Binance.US, Huobi and Bittrex.