Once a major banking partner for several cryptocurrency companies, Silvergate will end operations in accordance with regulatory requirements.
In a press release shared on Wednesday, Silvergate Capital Corporation, the holding company of Silvergate Bank, announced the immediate liquidation of the bank’s operations along with the voluntary liquidation of the bank.
“In light of recent industry and regulatory developments, Silvergate believes that an orderly winding down of the Bank’s operations and a voluntary liquidation of the Bank is the best way forward,” said the Press release states The settlement process will include full refund of all deposits.
Silvergate Bank will also discontinue the Silvergate Exchange Network (SEN), which it previously announced on March 3, 2023 on its website. According to the press release, all other services related to deposits remain operational.
Centerview Partners LLC will act as financial advisor to the bank, Cravath, Swaine & Moore LLP will act as its legal advisor, and Strategic Risk Associates will assist in managing transition projects.
Just yesterday, Bitcoin Magazine PRO’s Dylan LeClair detailed the reason for this sudden crash, writing that “Silvergate’s share price is not imploding due to the performance of a crypto token as was the case with many companies in the crypto winter of 2022, but rather an exodus of deposits that has forced the company to liquidate long-lived securities at a loss to stay liquid.” He goes on to explain the fractional reserve and lending system that has evidently led to the bank’s downfall.
