Brendan Blumer, CEO of Block.one, which developed the EOSIO blockchain platform and the EOS (EOS) coin, bought a stake in Silvergate Capital, the holding company of Silvergate Bank, a cryptographic gateway network designed for financial institutions, according to a filing with the SEC. That document, dated November 23, listed November 16 as the date of the transaction.

The purchase of nearly 3 million shares represents 9.27% ​​of Silvergate’s shares. Blumer personally bought 571,351 shares and Block.one bought 2,363,186. According to CNN, this deal will make them the largest shareholder in Silvergate.

Block.one raised a record $4 billion in its initial coin offering (ICO) for EOS in 2017-2018. Subsequently, the United States Securities and Exchange Commission (SEC) accused Block.one of failing to register its ICO. Block.one settled with the SEC for $24 million. Block.one was also the subject of class action lawsuits by EOS investors over money-raising issues and, later, the coin’s market performance. The EOS Network Foundation announced plans to sue Block.one for $4.1 billion in February. The network was fully decentralized in September.

Block.one also founded the Bullish crypto exchange.

Related: Inside the Mind of Blockchain Developers: Can EOS Deliver a Killer Social DApp?

Silvergate posted mixed results in the third quarter of this year, with crypto-to-fiat transfers falling 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, allegedly due to distribution issues.

Meta employees and others who had worked at Diem created the Aptos network. Silvergate has also partnered with Crypto.com.

Block.one did not respond to a query from Cointelegraph at press time.





This post Block.one and its CEO become the largest shareholders of Silvergate Capital

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