Silvergate Bank Announces Wind Down and Liquidation Plan
Silvergate Bank, a crypto-friendly bank, has announced its intention to wind down operations and voluntarily liquidate the company’s assets. The announcement comes after the bank faced significant financial troubles, and its stock plummeted in value.
Over the last six months, Silvergate Capital Corporation’s stock dropped 94.82% against the U.S. dollar due to its exposure to the now-defunct crypto exchange FTX. On Wednesday, March 8, 2023, the company announced its plans to wind down operations and liquidate the bank.
Silvergate discontinued its Silvergate Exchange Network payment platform four days ago. The bank believes that an orderly wind down of the bank is the best course of action in light of recent industry and regulatory developments.
The bank’s wind down and liquidation plan will be overseen by a court-appointed receiver. The receiver will work with the bank’s management team to ensure that the bank’s assets are liquidated in an orderly and efficient manner.
Silvergate Bank has been a popular choice for crypto investors due to its crypto-friendly policies. However, the bank’s exposure to FTX and recent regulatory developments have led to its downfall.
The bank’s customers will be able to access their accounts and withdraw their funds during the wind down process. The bank has assured its customers that their deposits are safe and will be returned to them in full.
The wind down and liquidation of Silvergate Bank is a significant development in the crypto industry. It highlights the risks associated with investing in crypto-related businesses and the need for proper regulation and oversight.
