Block.one & CEO have acquired largest stake in Silvergate Capital

Block.one CEO, Brendan Blumer, and the company itself has bought into Silvergate Capital, the Silvergate Bank holding company. The transaction according to an SEC filing dated Nov. 23rd, was completed on Nov. 16th. Silvergate Bank is viewed as a crypto-fiat gateway network set up for financial institutions. 

Brendan Blumer, who was among the team that developed the EOSIO blockchain platform and EOS, and also the founder of Bullish Crypto Exchange, purchased about 3 million shares valued at 9.27% of Silvergate stock. The CEO made a personal purchase of 571,351 shares, and Block.one bagged 2,363,186 shares. 

The purchase, according to CNN, will have Block.one and its CEO emerge as Silvergate’s largest shareholder.

In 2017 and 2018, Block.one raised $4 billion in its initial coin offering (ICO) for EOS. Afterward, Block.one was charged by the US SEC for not registering its ICO, which was later settled with $24 million. 

The firm, Block.one, has also been filed  by EOS investors over money-raising issues and the coin’s performance in the exchange market. In addition, the EOS Network Foundation moved to sue Block.one for $4.1 billion.

Silvergate had partnered with Meta to issue the Diem stablecoin. Silvergate bought the project and said it would integrate it into its Silvergate Exchange Network. However, its planned stablecoin launch was reportedly delayed, according to Silvergate’s announcement in October, which they credited to distribution problems. 

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