Cryptocurrency Bank Silvergate Will Be Liquidated

Cryptocurrency Bank Silvergate Will Be Liquidated

Silvergate Capital announced the closure of its Silvergate cryptocurrency bank. Its activities will be stopped, and the bank itself will be liquidated in accordance with the law, the press release says.

“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 Bank’s wind down and liquidation plan includes full repayment of all deposits,” the company said.

Last week, Silvergate notified the SEC that it would not be able to file its financial statements on time because it overestimated its ability to continue in business. After that, many crypto exchanges and trading platforms, such as Coinbase and Gemini, were quick to announce that they were stopping working with the bank.

On March 3, Silvergate shut down the Silvergate Exchange Network (SEN) payment network. The network has been widely used by crypto exchanges, market makers and large market participants for instant 24/7 transfer of US dollars. At the end of 2022, Silvergate’s clients included 94 crypto exchanges and nearly 900 institutional investors.

Silvergate (SI) shares on the New York Stock Exchange (NYSE) fell 48% from $4.91 to $2.52 on news of the bank’s closure. In the last month alone, the bank’s papers have lost almost 75% in price.

The cryptocurrency market also reacted to the message by falling rates. The cost of bitcoin has updated a minimum since mid-February and fell to $21.6 thousand.

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