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Silvergate begins NYSE delisting process

The parent company of the collapsed Silvergate Bank will be delisted from the New York Stock Exchange, and 230 of its staff will be let go, Silvergate Capital has disclosed.

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The parent company of the collapsed Silvergate Bank will be delisted from the New York Stock Exchange, and 230 of its staff will be let go, Silvergate Capital has disclosed.

In a May 11 filing to the United States Securities and Exchange Commission, Silvergate Capital said 230 staff will be separated starting May 12. The NYSE also suspended trading in its stock, with delisting to commence “shortly.”

After the staff cut, approximately 80 officers and employees will be left behind to continue Silvergate Bank’s liquidation process.

More cuts are on the horizon. At least three more headcount cuts are slated, for June 30, Aug. 30 and Nov. 30 or later, the filing states.

Silvergate estimated staff drawdown costs would land around $13.6 million with expenses on severance, retention and bonus pays along with job placement programs.

In a separate May 11 SEC filing, Silvergate said it’s unable to file legally required financial reports for the 2022 fiscal year and the first quarter of 2023 and “does not expect to be able” to file any similar reports in the future.

The firm cited challenges due to continuous developments relating to the regulatory and other inquiries and investigations that are pending, and liabilities from legal action and the bank’s liquidation process.

Silvergate determined it’s in the best interests of stakeholders to minimize costs and expenses to preserve value. Some of the staff to be cut include those that are “critical” in preparing these filings, the firm added. On March 8, Silvergate Capital first announced it would voluntarily liquidate Silvergate Bank.

Days earlier, a line-up of crypto firms, including Gemini, Coinbase, Galaxy Digital and BitStamp, severed ties with the bank as it faced a Justice Department investigation over alleged ties to the collapse of FTX.

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7-Eleven South Korea to accept CBDC payments in national pilot program

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7-Eleven is set to participate in the testing phase of a central bank digital currency (CBDC) initiative, running from April to June. The retail giant’s involvement highlights the growing push for digital currency integration in everyday transactions.

The pilot program will assess the feasibility of CBDC payments at 7-Eleven stores, allowing customers to make purchases using the digital currency. The initiative is part of a broader effort to explore the real-world application of CBDCs in retail environments, potentially shaping future payment systems.

As central banks worldwide accelerate their digital currency research, private sector collaboration is seen as crucial for widespread adoption. If successful, 7-Eleven’s participation could pave the way for broader CBDC usage across retail and commercial sectors.

The outcome of the testing phase will provide valuable insights into consumer adoption, transaction efficiency, and potential regulatory considerations, influencing how CBDCs are integrated into mainstream financial systems.

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SEC and Gemini ask to pause lawsuit to explore ‘potential resolution’

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The U.S. Securities and Exchange Commission (SEC) and crypto exchange Gemini have agreed to pause legal proceedings as both sides explore a potential resolution to their ongoing lawsuit. The move signals a possible settlement in the high-profile case, which centers around Gemini’s now-defunct Earn program.

The SEC initially sued Gemini, alleging that the Earn program—designed to offer users yield on crypto deposits—operated as an unregistered securities offering. Gemini has pushed back against the claims, arguing that its operations complied with regulatory standards.

By pausing litigation, both parties may be looking for a compromise that could set a precedent for crypto lending products in the U.S. A settlement could also provide regulatory clarity for similar platforms navigating SEC scrutiny.

While the outcome remains uncertain, the crypto industry is closely watching the case, as its resolution could impact future enforcement actions and the broader regulatory approach toward digital asset lending services.

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GameStop finishes $1.5B raise to add Bitcoin to its balance sheet

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GameStop has successfully completed a debt offering, raising capital that may be used to acquire Bitcoin, signaling the company’s deeper foray into digital assets. The move aligns with its broader strategy to diversify beyond traditional retail operations and into emerging financial technologies.

While GameStop has not confirmed the exact allocation of the funds, market speculation suggests that a portion could be used to buy Bitcoin, following in the footsteps of companies like MicroStrategy. The potential investment would reinforce GameStop’s ongoing pivot toward blockchain and digital assets, an effort that began with its NFT marketplace and crypto-related initiatives.

Analysts see this development as part of a growing trend of corporations exploring Bitcoin as a reserve asset amid concerns over inflation and monetary policy. If GameStop proceeds with the acquisition, it could further validate Bitcoin’s role as a strategic investment for publicly traded companies.

The company’s board will ultimately decide how the newly raised capital is deployed. Investors and the broader crypto market are watching closely for any official announcements regarding GameStop’s Bitcoin strategy.

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