Block.one Along With CEO Bought 3M Shares of Silvergate Capital

Block.one Along With CEO Bought 3M Shares of Silvergate Capital
  • The paperwork, dated Nov. 23, indicated Nov. 16 as the date of the transaction.
  • This transaction will make them Silvergate’s biggest stakeholder.

According to a filing with the SEC, Brendan Blumer, CEO of Block.one, which created the EOSIO blockchain platform and EOS, has acquired a stake in Silvergate Capital, the parent company of Silvergate Bank, a crypto-fiat gateway network tailored to the needs of financial institutions. Moreover, the paperwork, dated Nov. 23, indicated Nov. 16 as the date of the transaction.

Almost 3 million shares, or 9.27% of Silvergate’s total, were acquired. Both Blumer (who bought 571,351) and Block.one (2,363,186) made purchases. According to CNN, this transaction will make them Silvergate’s biggest stakeholder.

Furthermore, Block.one secured a record-breaking $4 billion in its initial coin offering (ICO) for EOS in 2017-2018. Subsequently, Block.one was accused of failing to register its ICO by the United States Securities and Exchange Commission (SEC). The SEC and Block.one reached a $24 million settlement.

Stablecoin Launch Delayed

EOS investors have sued Block.one in a class action over the company’s fundraising practices and the subsequent decline in the value of the currency. In February, the EOS Network Foundation said it will file a lawsuit against Block.one for $4.1 billion. Since September, the network has been completely decentralized.

Silvergate witnessed mixed Q3 statistics this year, with crypto-to-fiat transfers declining by $50 billion year-on-year, yet earnings soared 84% to $43.33 billion at the same time. The Diem stablecoin was released by the bank in conjunction with Meta.

Then the project was sold to Silvergate, which announced it will incorporate it into its Silvergate Exchange Network. Silvergate planned to produce a stablecoin this year, but announced a delay in the debut in October, apparently owing to distribution concerns.

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