Brendan Blumer, CEO of Block.one, which developed the EOSIO blockchain platform and EOS (EOS) coin, has bought a stake in Silvergate Capital, the holding company of Silvergate Bank, a fiat-crypto gateway network designed for institutions. financial firms, according to an SEC filing. That document, dated November 23, lists November 16 as the date of the transaction.
The purchase of nearly 3 million shares represents 9.27% of Silvergate’s shares. Blumer personally purchased 571,351 shares, and Block.one purchased 2,363,186. According to CNN, this operation will make them the largest shareholder of Silvergate.
— yeezus (@yeezuscapital) November 23, 2022
Block.one raised a record $4 billion in its EOS Initial Coin Offering (ICO) in 2017-2018. Later, the United States Securities and Exchange Commission (SEC) accused Block.one of failing to register its ICO. Block.one reached a settlement with the SEC for USD 24 million. Block.one was also the subject of class action lawsuits by EOS investors over issues of raising money and subsequently over the coin’s performance in the market. The EOS Network Foundation announced its plans to sue Block.one for $4.1 billion in February. The network was fully decentralized in September.
Block.one also founded the Bullish cryptocurrency exchange.
Silvergate posted mixed results in the third quarter of this year, as cryptocurrency transfers fell by $50 billion year-over-year, though profits rose 84% to $43.33 billion in the same period. The bank had partnered with Facebook (now Meta) to issue the Diem stablecoin. The project was then sold to Silvergate, which said it would integrate it into its Silvergate exchange network. Silvergate had intended to issue a stablecoin this year, but announced a delayed launch in October, reportedly due to distribution issues.
Meta employees and others who had worked at Diem went on to create the Aptos network. Silvergate has also partnered with Crypto.com.
Block.one had not responded to a Cointelegraph inquiry at press time.
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