Silvergate Capital has announced that it will wind down operations at Silvergate Bank and liquidate that branch of the overall company. Silvergate was one of the major crypto banking giants still in the scene with $11 billion USD in total assets. The other, Signature Bank in New York, remains with over $114 billion. Meanwhile, payment platform Silvergate Exchange Network has already been suspended as the company prepares to liquidate Silvergate Bank.
Word of Silvergate Bank’s shutdown was announced via a press release on its website on March 8, 2023.
“In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of Bank operations and a voluntary liquidation of the Bank is the best path forward,” the company wrote. “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.”
Silvergate stock was down substantially following the news.
Silvergate is only the latest among several cryptocurrency and NFT operations that have been hit hard by the extensive crash of both trends. It’s worth noting that one of Silvergate’s backers was FTX, which crashed heavily and was forced to declare bankruptcy, dragging several other organizations down with it. Before its bankruptcy, FTX was a major customer and backer of Silvergate Bank.
With Silvergate becoming the latest to back out of cryptocurrency on dour terms, it still remains to be seen if cryptocurrency will have any chance of bouncing back from the current dismal state. Stay tuned as we continue to watch and report on further developments and updates.