SAN FRANCISCO, CA / ACCESSWIRE / January 25, 2023 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP recommends that Silvergate Capital Corporation ("Silvergate" or the "Company") investors who suffered losses from exchanging Silvergate securities (NYSE:SI) between November 9, 2021 and January 5, 2023 contact our law firm immediately for more information regarding the pending securities fraud class action against Silvergate. The deadline to apply to be a lead plaintiff is February 6, 2023.
Class Period: November 9, 2021 - January 5, 2023
Lead Plaintiff Motion Deadline: February 6, 2023
Case information: lieffcabraser.com/securities/silvergate/
Contact us: Email or text [email protected] or call 1-800-541-7358
The securities class action alleges that Silvergate and certain of its senior executives misled investors by failing to disclose that Silvergate, which provides payments, lending, and funding solutions for digital currency companies and investors, did not have adequate controls for detecting and preventing money laundering and failing to disclose that the Silvergate platform was used to launder more than $425 million.
On November 15, 2022, research firm Marcus Aurelius Value tweeted that subpoenaed Silvergate bank records suggested that over $425 million had been laundered using the Silvergate platform. On this news, the price of Silvergate Class A common stock fell $6.13 per share, or 17.27%, from its closing price of $35.49 on November 14, 2022, to close at $29.36 on November 15, 2022, on elevated trading volume.
On November 17, 2022, the newsletter The Bear Cave published an article about multiple companies with potential negative exposure to the FTX cryptocurrency exchange collapse. The article connected Silvergate with a money laundering operation that laundered $425 million through cryptocurrency trading platforms. On this news, the price of Silvergate Class A common stock fell $3.00 per share, or 10.75%, from its closing price of $27.90 on November 16, 2022, to close at $24.90 on November 17, 2022, on elevated trading volume.
On January 5, 2023, Silvergate announced that its total deposits from digital asset customers had declined by $3.8 billion, or 68%, between September and December 2022. On the same day, The Wall Street Journal reported that Silvergate's deposit declines exceeded most banks' deposit losses during the Great Depression. On this news, the price of Silvergate Class A common stock fell $9.38 per share, or 42.73%, from its closing price of $21.95 on January 4, 2023, to close at $12.57 on January 5, 2023, on elevated trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with over 120 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a "Plaintiffs' Powerhouse" by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $127 billion in verdicts and settlements. For over 50 years, Lieff Cabraser has remained committed to ensuring access to justice for all.
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SOURCE: Lieff Cabraser Heimann & Bernstein