According to new reports, one of the most crypto-focused banks, Silvergate, is shutting down its operations and liquidation after the market meltdown. The firm has served as one of the two main banks of the crypto industry, along with Signature Bank. As per the liquidation plan, they shared last Wednesday, all the deposits will be fully repaid soon.
Silvergate will shut down its operations and liquidate its bank soon
Silvergate Capital, one of the largest crypto-focused banks in the world and a central tender in the crypto market, said on Wednesday that it’s going to shut down its operation and liquidate its bank soon. The stock plunged more than 36 per cent in after-hours trading.
Silvergate Capital has served as one of the two main major crypto companies alongside the New-York based Signature Bank. Silvergate has just over 11 billion dollars in assets, compared with over 114 billion USD at Signature. Bankrupt crypto exchange FTX was a major Silvergate customer.
Recently, the company said in a statement that in light of recent industry and regulatory developments, Silvergate believes that an orderly wind of Bank operations and voluntary liquidation is the best thing possible. They shared a liquidation plan on Wednesday, with which all the deposits will be fully repaid. However, the company did not say how it plans to resolve claims against its business.
Centerview Partners will act as Silvergate’s financial advisor
As you know, one of the most crypto-focused banks, Silvergate, is shutting down its operations and liquidation after the market meltdown. The recent reports also revealed that Centerview Partners would act as Silvergate’s financial advisor, and Swaine, Moore, and Cravath would provide legal services.
The liquidation comes less than a week after Silvergate discontinued its payment platform, Silvergate Exchange Network or SEN. As a part of the liquidation announcement, Silvergate clarified that all the other deposit-related services remain operational as the company winds down. Customers will also get notified should there be any further changes or not.
Last week, the company also said that it would delay filing its annual 10-K for 2022 while it sorted out the viability of its business. The company revealed that the delayed filing was mainly caused due to an imminent regulatory crackdown, including a probe already underway by the DOJ.
What are your thoughts on Silvergate’s plan to shut down its operation and liquidate the bank? Do you think their liquidation plan is good enough to support their plan? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
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