Silvergate CEO Alan Lane has denied allegations of nepotism earlier than U.S. senators, in response to a report from The Wall Road Journal on Dec. 21.
Final month, on Nov.7, Silvergate Capital introduced two adjustments to govt positions inside the firm. Sadly, it uncared for to say at the moment that Lane’s son-in-law, Tyler Pearson, could be affected by the company shuffle.
Pearson previously served as Chief Danger Officer at Silvergate however was reassigned to the deputy equal of that position in the course of the shuffle. He now stories to Kate Fraher, who took on the position of Chief Danger Officer after beforehand serving as the corporate’s COO.
Lane denied that the change was as a result of any efficiency points on Pearson’s half. As an alternative, he known as the choice “a big administration restructuring unrelated to job efficiency,” including that workers adjustments “prolonged effectively past Mr. Pearson.”
Silvergate is often accused of nepotism within the short-seller neighborhood, as the corporate employs at the least two different fast members of the family of Alan Lane. His son, Chris Lane, is employed by Silvergate in a lead enterprise techniques position. Alan Lane’s son-in-law, Jason Brenier, additionally serves as the corporate’s Director of Buying and selling.
Three U.S. senators — together with famous crypto critic Elizabeth Warren — first known as for solutions from Silvergate on these and different issues on Dec. 5.
The senators initially imposed right now’s query in a letter that day: “Why did Silvergate substitute Tyler Pearson as Chief Danger Officer?”
The query was tangentially associated to the senators’ extra vital considerations about Silvergate’s relationship with the bankrupt crypto trade FTX. Silvergate carried out its govt shuffle the identical weekend FTX started to break down, seemingly main the senators to suspect that it was associated to the corporate’s FTX connections.
Yesterday, senators asserted that an account at Silvergate was on the middle of FTX’s collapse based mostly on its conversations with the previous firm. Nonetheless, these conversations have produced few different concrete particulars on what might have occurred.
