The nearly 15% rise in Bitcoin (BTC-USD) re-affirms its relative strength against other cryptocurrencies and platforms. Bitcoin’s return to around $24,700 overshadowed Binance’s asset transfer.
Investors should not ignore Binance’s withdrawal of $400 million from Silvergate Capital, a crypto lender, and fintech. In 2021, Reuters reported that Binance, a global cryptocurrency exchange, moved nearly $400 million from Silvergate Bank. Between Jan. and Mar. 2021, it transferred funds from BAM Trading’s Silvergate account. The SEC is investigating BAM Trading and its connection to Binance.
Reuters could not determine why Binance transferred the funds. Binance does not have any authority to operate in the U.S.
Binance Coin (BNB-USD) fell on Feb. 13 to around $289 before ending the week flat at around $316.40.
Why Transfer Matters
The transfer in 2021 matters because it happened without investors and clients knowing. Financial news outlooks could not report the material fund transfer. It also spared Silvergate stock from selling off. Instead, SI stock traded from $80 to $180 in that Jan. to March 2021 timeframe.
Shorts are surrounding Silvergate stock. The short interest is 72.8%. Bears could have trouble betting against the firm. Ken Griffin's Citadel Securities disclosed that it held a 5.5% stake, or 1.72 million shares, in Silvergate Capital.
