Alan Lane, chief executive of former crypto banking darling Silvergate Bank, left his post on Tuesday, a regulatory filing shows.
A Securities and Exchange Commission filing said that Lane had previously informed the company of his departure plans, and that those plans “were not the result of any dispute or disagreement with the Company, the Bank or the respective board of directors on any matter relating to the operations, policies or practices of the Company or Bank.”
Following Lane’s departure, Chief Transition Officer Kathleen Fraher now serves as Silvergate’s principal executive officer for purposes of reports filed under the Securities Exchange Act of 1934.
Alongside Lane, Chief Legal Officer John Bonino also left the bank Tuesday; and Chief Financial Officer Antonio Martino announced his plans to depart, effective Sept. 30, upon which date Chief Accounting Officer Andrew Surry will begin serving as the bank’s principal financial officer for purposes of reports filed under the Exchange Act.
Both Fraher and Surry will maintain their current titles, as Silvergate does not expect to appoint new executives in light of its pursuit of liquidation.
Lane, Bonino and Martino will each receive the severance benefits Silvergate provided to employees being discharged over the bank liquidation process, Tuesday’s filing said.
The November collapse of crypto exchange FTX triggered a run on Silvergate, forcing the bank to sell assets at a loss to cover roughly $8.1 billion in withdrawals late last year. The bank cut 40% of its staff, or about 200 people, in January due to “economic realities” in the crypto world, and lawmakers pressed CEO Lane in February on his knowledge of FTX’s alleged fraudulent activity.
Silvergate’s risk management and due diligence processes, the lawmakers wrote in a published letter, “failed miserably.”
The bank’s issues culminated in March in its own wind-down.
Additional layoffs of about 260 people came in May, according to a California WARN report; and in June, the Federal Reserve announced a consent order against Silvergate to ensure the bank’s wind-down happened “in a manner that protects the bank’s depositors and the Deposit Insurance Fund.”
A spokesperson for Silvergate did not respond to a request for comment.
