off-the-wire

Ken Griffin's Citadel reveals 5.5% stake in crypto bank Silvergate

Kitco Media
By Reuters
Published:
Updated:
Reuters
By Hannah Lang Feb 14 (Reuters) - Citadel Securities, the market maker that is part of Ken Griffin's Citadel investment firm, on Tuesday reported a 5.5% stake in cryptocurrency-focused lender Silvergate Capital Corp worth about $25 million, according to a regulatory filing.


Shares in Silvergate jumped after the disclosure, and were last up about 14%.


Silvergate has been seeking to ease investor concerns over its future, after reporting a $1 billion loss for the fourth quarter because crypto exchange FTX's bankruptcy shook confidence in the digital asset sector. Federal prosecutors in Washington are probing Silvergate and its dealings with FTX and Alameda Research, according to a source familiar with the investigation. U.S. custodian bank State Street Corp reported a 9.32% passive stake in Silvergate earlier this month.
(Reporting by Hannah Lang in Washington; Editing by Leslie Adler)

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