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By Pam Martens and Russ Martens: January 6, 2023 ~ If you’re looking for the poster child for everything that is toxic about mixing crypto with federally-insured banks, look no further than Silvergate Capital Corporation, parent of federally-insured Silvergate Bank. Yesterday, the company lost 42.73 percent of its market capitalization in one trading session, putting its stock price losses at 91 percent over the past 12 months. The stock has been plunging since April of last year. Then came the jarring news on November 11 that one of its large customers, crypto exchange FTX, was filing for Chapter 11 bankruptcy along with its sister hedge fund, Alameda Research – which, it turns out, had been using (and losing) billions of dollars of FTX customer funds to trade and acquire without the knowledge of customers. More than 100 opaque affiliates of FTX, many headquartered in offshore locations, also filed for bankruptcy. Three … Continue reading