Brendan Blumer, CEO of Block.one, which developed the EOSIO and EOS blockchain platform (EOS) coin, bought a stake in Silvergate Capital, the holding company of Silvergate Bank, a crypto-fiat gateway network designed for financial institutions, according to the SEC filing. In that November 23 document, the transaction date was listed as November 16.
The purchase of nearly 3 million shares represents a 9.27% stake in Silvergate. Blumer bought 571,351 shares personally and Block.one bought 2,363,186. According to CNN, the deal will make are Silvergate’s largest shareholder.
— yeezus (@yeezuscapital) November 23, 2022
Block one achieved a record $4 billion in initial coin offering (ICO) for EOS in 2017-2018. Later the United States Securities and Exchange Commission (SEC) charged Block.one without registration its ICO. Block.one Settles with SEC for $24 Million Block one was also an object class action lawsuits by EOS investors due to problems with raising money and later the coin’s market performance. EOS Network Foundation announced plans to sue Block.one for $4.1 billion in February. Sew has become fully decentralized in September.
Block one also founded Bullish crypto exchange.
Silvergate posted mixed Q3 results this year, when crypto-to-fiat transfers fell by $50 billion year-over-year, although profits rose 84% to $43.33 billion over the same period. The bank had works with Facebook (now Meta) to release the Diem stablecoin. Then the project was sold to Silvergate, which said it would incorporate it into its Silvergate Exchange Network. Silvergate intended to release the stablecoin later this year, but announced a launch delay in October, supposedly due to distribution issues.
Block.one did not respond to Cointelegraph’s query by the time of publication.