Silvergate Bank Announces Liquidation And Winding Down Of Operations

Once a large banking spouse for assorted cryptocurrency firms, Silvergate volition extremity its operations successful enactment with regulatory requirements.

In a property merchandise shared connected Wednesday, Silvergate Capital Corporation, the holding institution for Silvergate Bank, announced the contiguous winding down of the bank’s operations on with voluntary liquidation of the bank.

“In airy of caller manufacture and regulatory developments, Silvergate believes that an orderly upwind down of Bank operations and a voluntary liquidation of the Bank is the champion way forward,” the press release states. The upwind down process volition see afloat repayment of each deposits.

Silvergate Bank volition besides discontinue the Silvergate Exchange Network (SEN), which it announced antecedently connected March 3, 2023 connected its website. According to the property release, each different deposit-related services stay operational.

Centerview Partners LLC volition enactment arsenic the bank’s fiscal advisor, Cravath, Swaine & Moore LLP volition enactment arsenic its ineligible advisor, and Strategic Risk Associates volition supply modulation task absorption assistance.

Just yesterday, Bitcoin Magazine PRO’s Dylan LeClair detailed the reason for this abrupt collapse, penning that “Silvergate’s stock terms isn’t imploding owed the show of a crypto token arsenic was the lawsuit for galore companies successful the crypto wintertime of 2022, but alternatively from a deposit exodus that has forced the steadfast to liquidate long-duration securities astatine a nonaccomplishment successful bid to stay liquid.” He goes connected to explicate the fractional reserve and lending strategy that evidently has led to the downfall of the bank.