Silvergate Bank Announces Voluntary Liquidation as Crypto Industry Woes Persist
At 4:30 p.m. Eastern Time, Silvergate Bank announced its intention to wind down the crypto-friendly bank’s operations and voluntarily liquidate the company’s assets. The news follows significant financial troubles the bank faced, and the firm’s stock plummeted in value. Details of Silvergate’s Wind Down and Liquidation Plan
Over the last six months, Silvergate Capital Corporation’s (NYSE: SI) stock dropped 94.82% against the U.S. dollar as the company faced significant financial troubles tied to its exposure to the now-defunct crypto exchange FTX. On Wednesday, March 8, 2023, the company announced it was winding down operations and plans to liquidate the bank. Four days ago, Silvergate discontinued the firm’s Silvergate Exchange Network payment platform.
“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’s press release detailed. “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’s statement added.
Silvergate’s stock closed Wednesday at $4.91 per share after the stock shed 40.99% in USD value over the last five days. Last week, it told the U.S. Securities and Exchange Commission (SEC) that it had to delay its annual fiscal earnings report, and the bank’s stock was downgraded by banking giant JPMorgan. In the filing, Silvergate mentioned its “ability to continue as a going concern,” and it also noted that it faced regulatory scrutiny from U.S. officials. After the stock downgrade, large crypto firms such as Circle, Crypto.com, Gemini, Paxos, and Coinbase distanced themselves from the crypto-friendly bank. Tags in this story asset preservation, bank operations, banking giant JPMorgan, Circle, Coinbase, crypto exchange FTX, crypto-friendly banking, Crypto.com, deposit repayment, Financial Troubles, Gemini, industry developments, large crypto firms, liquidation plan, Paxos, payment platform, proprietary technology, regulatory scrutiny, residual value, SEC, SI, SI stock, Silvergate Bank, Silvergate Capital Corporation, stock downgrade, tax assets, US Securities and Exchange Commission, USD value, voluntary liquidation, wind down plan
What impact will the voluntary liquidation of Silvergate Bank have on the broader cryptocurrency industry? Share your thoughts about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Ethereum Co-Founder Vitalik Buterin"s Address Sells Trillions of Airdropped Tokens, Causes Illiquid Coin Prices to Plummet NEWS | 2 hours ago BIS Releases Report On ‘Project Icebreaker’ — Develops Cross-Border Retail CBDC Payment Model NEWS | 15 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleEthereum Co-Founder Vitalik Buterin’s Address Sells Trillions of Airdropped Tokens, Causes Illiquid Coin Prices to Plummet Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin