Silvergate loses C-suite, PayPal gains new CEO amid stablecoin effort

Grayscale is also looking to bolster its ETF team

article-image

docstockmedia/Shutterstock modified by Blockworks

share

The wind down of ill-fated, once-crypto friendly Silvergate Bank continued this week. 

CEO Alan Lane and chief legal officer John Bonino left their positions effective Aug. 15, and the chief financial officer, Antonio Martino, will depart by Sept. 30. 

All three men will receive severance packages, according to a US Security and Exchange Commission filing on Tuesday.

Kathleen Fraher, who has been the chief risk officer at Silvergate for over 17 years, will lead the bank through its liquidation process in Lane’s stead as chief transition officer. 

Silvergate had a reputation for being a bank that serviced crypto clients as far back as 2013, however problems began to emerge by early 2023. 

The bank lost $1 billion in the fourth quarter of 2022, in part due to it being forced to sell assets off at a major loss in order to redeem around $8 billion in customer withdrawals. 

As this situation spiraled, Silvergate cut 200 positions in January 2023, amounting to 40% of its workforce. 

In March, it all became too much to bear. Silvergate announced its intent to liquidate the bank just days after shuttering its exchange network, SEN.

By May, there were approximately 80 employees remaining at Silvergate to help with the liquidation, a fraction of the 400 people that worked there as of 2022, according to Pitchbook 

PayPal gets a new chief executive

Alex Chriss will become PayPal’s new president and CEO on Sept. 27, 2023, the company announced on Monday.

Chriss’s hiring puts him in a unique position, where he’ll ultimately helm PayPal’s rollout of its dollar backed stablecoin.

PYUSD, PayPal’s stablecoin, is built on Ethereum and is entering a competitive field, with giants like Tether and Circle being the top dogs as of now. 

Chriss hasn’t been vocal on crypto as of yet, so there simply isn’t much to go on in terms of his views. Blockworks reached out to PayPal. 

Intuit, the fintech giant behind brands like TurboTax, Credit Karma and Mailchimp, had previously been Chriss’s home for nearly two decades. He’s served in a variety of roles there and is departing as an executive vice president and general manager of Intuit’s small business and self-employed group.

Chriss will replace Dan Schulman, who’s held the top job at PayPal since 2014. 

Other notable hires

  • Grayscale is hiring a Senior Associate for its ETF team, at a time when the race to a spot bitcoin ETF is heating up.
  • In a reposted listing on LinkedIn, Coinbase is searching for a “Market Regulation Investigator” who’ll be investigating trade violations on its derivatives exchange in a bid to comply with CFTC regulations.
  • Thomas Übermeier is joining IOHK, the company behind Cardano, as head of software engineering on the team building data protection blockchain Midnight.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (10).jpg

Research

Kinto's novel L2 prioritizes compliance, security, and the user experience.

article-image

Whether you decide to invest in bitcoin should be up to you, not the SEC or Gary Gensler

article-image

Plus, Sanctum’s upcoming airdrop for its new CLOUD token

article-image

The $887 million of net inflows was the category’s second-best total in a single day since their January launches

article-image

The industry-first general purpose zk programmable blockchain charts a fresh course

article-image

Cause of $300 million-plus “unauthorized leak” still unknown as company gets set for big fundraise

article-image

The term DePIN has become a buzzword — and many projects are misusing it to attract attention