Silvergate Capital Says Client Deposits on BlockFi Accounts Do Not Exceed $20 Million
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Client deposits of Silvergate Capital placed on BlockFi accounts do not exceed $20 million, and the landing platform itself does not participate in the SEN Leverage program, according to the statement released by the company.
On November 28, BlockFi and eight subsidiaries filed for Chapter 11 bankruptcy. The company has more than 100,000 creditors, and its assets and liabilities are valued at between $1 billion and $10 billion.
Silvergate has called the risks associated with the placed funds “minimal:”
“BlockFi does not act as custodian for Bitcoin-collateralized SEN Leverage loans, which are still valid today with zero losses and no forced liquidations. Silvergate has no investment in the platform.”
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