Breaking: Silvergate Bank Closes, Voluntary Liquidation Of Assets
- Unable to sustain itself after the financial crisis, Silvergate Bank ceased operations and liquidated assets.
- This plan is the best solution for a full refund of all deposits.
- Following the announcement, the bank’s share prBank’st a record low, falling 5.76% on Wednesday to $4.91, down 71.56% year-over-year.
According to a notice posted late on March 8, Silvergate Bank’s parent company, Silvergate Capital Corp., said it would “voluntarily liquidate” the bank’s assets depositors and scale down operations.
Previously, Silvergate Bank was known as a bank specializing in providing USD trading services for many leading cryptocurrency exchanges in the US since 2013 and is said to have also been affected by many chains collapses of the US dollar crypto industry in 2022, especially the bankruptcy of FTX exchange.
“In light of recent industry and regulatory developments, Silvergate Bank believes that an orderly wind-down of Bank operations and a voluntary liquidation of the Bank is the best path forward. The Bank’s wind-down and liquidation plan includes full repayment of all deposits. The Company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets.”
Because of its direct relationship with FTX, the bank has many liquidity and legal problems. Being closely watched since the end of 2022, a few days ago, Silvergate Bank announced to the SEC that it could not file financial statements on time because it needed more time to re-assess assets and be investigated by US authorities.
The above information has caused many crypto companies still Silvergate customers to immediately unilaterally cut ties with the bank, forcing them to stop the inter-crypto exchange network called SEN, including Circle and Coinbase,…
Silvergate Bank announced today that it voluntarily began liquidation on Wednesday at the state’s Bureau of Financial Protection and Innovation.
The Company said in a statement that it believes an orderly shutdown of the bank and a liquidation of the bank is the forward, adding that the plan includes a full refund of all deposits.
The announcement sent the bank’s stock SI to a record low, falling 5.76% on Wednesday to $4.91, marking a 71.56% decline year-over-year.
Silvergate, founded in 1988, has become a prominent figure in the burgeoning crypto market by taking on customers during the crypto boom and bringing its crypto assets to the fore $2.1 billion in September 2020.
However, according to recent surveys, it has hidden holes in the business management of the loosely regulated market.
After the collapse of the FTX exchange, many US financial agencies simultaneously warned banks about the risks of providing services to companies with exposure to the cryptocurrency sector.
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