Silvergate Capital Corporation Securities Class Litigation


Securities class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of Silvergate Capital Corporation (“Silvergate” or the “Company”) (NYSE: SI) from November 9, 2021 through January 5, 2023, inclusive (the “Class Period”).

If you purchased or otherwise acquired Silvergate securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than February 6, 2023.  A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff.  You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

Silvergate investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff complete the form below, text or email, or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.

Background on the Silvergate Securities Class Litigation

Silvergate, a Delaware corporation with its principal executive office in La Jolla, California, is a digital currency company that owns and manages the Silvergate Exchange Network platform, which provides payments, lending, and funding services for digital currency users. Silvergate is also the parent company of Silvergate Bank, which provides conventional banking services.

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.

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    About Lieff Cabraser

    Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, 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. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America,” and listed us as its “2020 California Plaintiff Firm of the Year.” Lieff Cabraser is committed to ensuring access to justice for all.