2 years ago
At 4:30 p.m. Eastern Time, Silvergate Bank announced its volition to upwind down the crypto-friendly bank’s operations and voluntarily liquidate the company’s assets. The quality follows important fiscal troubles the slope faced, and the firm’s banal plummeted successful value.
Details of Silvergate’s Wind Down and Liquidation Plan
Over the past six months, Silvergate Capital Corporation’s (NYSE: SI) banal dropped 94.82% against the U.S. dollar arsenic the institution faced important fiscal troubles tied to its vulnerability to the now-defunct crypto speech FTX. On Wednesday, March 8, 2023, the institution announced it was winding down operations and plans to liquidate the bank. Four days ago, Silvergate discontinued the firm’s Silvergate Exchange Network outgo platform.
“In airy of caller manufacture and regulatory developments, Silvergate believes that an orderly upwind down of slope operations and a voluntary liquidation of the slope is the champion way forward,” the company’s press release detailed. “The bank’s upwind down and liquidation program includes afloat repayment of each deposits. The institution is besides considering however champion to resoluteness claims and sphere the residual worth of its assets, including its proprietary exertion and taxation assets,” Silvergate’s connection added.
Silvergate’s banal closed Wednesday astatine $4.91 per share aft the banal shed 40.99% successful USD worth implicit the past 5 days. Last week, it told the U.S. Securities and Exchange Commission (SEC) that it had to hold its yearly fiscal net report, and the bank’s banal was downgraded by banking elephantine JPMorgan. In the filing, Silvergate mentioned its “ability to proceed arsenic a going concern,” and it besides noted that it faced regulatory scrutiny from U.S. officials. After the banal downgrade, ample crypto firms specified arsenic Circle, Crypto.com, Gemini, Paxos, and Coinbase distanced themselves from the crypto-friendly bank.
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What interaction volition the voluntary liquidation of Silvergate Bank person connected the broader cryptocurrency industry? Share your thoughts astir this taxable successful the comments conception below.
Jamie Redman
Jamie Redman is the News Lead astatine Bitcoin.com News and a fiscal tech writer surviving successful Florida. Redman has been an progressive subordinate of the cryptocurrency assemblage since 2011. He has a passionateness for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written much than 6,000 articles for Bitcoin.com News astir the disruptive protocols emerging today.
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