HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Silvergate Capital (SI) Investors with $200K+ Losses to Contact Firm’s Attorneys, Deadline Approaching in Securities Fraud Class Action

SAN FRANCISCO, Jan. 16, 2023 (GLOBE NEWSWIRE) — Hagens Berman urges Silvergate Capital Corporation (NYSE: SI) investors who suffered significant losses to submit your losses now.

Class Period: Nov. 9, 2021 – Jan. 5, 2023
Lead Plaintiff Deadline: Feb. 6, 2023
Visit: www.hbsslaw.com/investor-fraud/SI
Contact An Attorney Now: SI@hbsslaw.com
                                                    844-916-0895

Silvergate Capital Corporation (NYSE: SI) Securities Class Action

The complaint alleges that Defendants misrepresented and failed to disclose to investors: (1) that Silvergate’s platform lacked sufficient controls and procedures to detect instances of money laundering; (2) that Silvergate’s customers engaged in money laundering in amounts exceeding $425 million; and (3) as a result, the company was reasonably likely to come under regulatory scrutiny and face damages, including penalties and reputational harm.

The truth began to emerge on Nov. 15, 2022, when analyst Marcus Aurelius Research highlighted the connection linking Silvergate to a money laundering operation that transferred $425 million off cryptocurrency trading platforms.

Then, on Nov. 17, 2022, analyst The Bear Cave released an article emphasizing Silvergate’s potential exposure to recently collapsed cryptocurrency exchange FTX.

The risks presented by Silvergate’s deficient controls and procedures have further materialized after the class period. Specifically, on Jan. 5, 2023 Silvergate reported that (1) its total deposits from digital asset customers as of Dec. 31, 2022 declined by a whopping $8.1 billion, or down 68%, from Sept. 30, 2022, (2) to maintain liquidity it sold $5.2 billion of debt securities at a loss of $718 million, and (3) it is firing 40% of its workforce.

In response to these events, the price of Silvergate shares has significantly declined.

“We’re focused on investors’ losses and whether Silvergate misled investors about the sufficiency of its controls to protect deposits from misappropriation,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Silvergate and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.

Whistleblowers: Persons with non-public information regarding Silvergate should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SI@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathrein, 844-916-0895