Silvergate Capital, the crypto-friendly bank, has announced that it will be winding down its operations. The decision comes after the company faced financial difficulties following the collapse of crypto exchange FTX in late 2022.
The news has sent shockwaves through the crypto industry, with Silvergate Capital shares plummeting nearly 50% in response. The company’s stock had already closed in the red on Wednesday, falling by more than 30% shortly after the announcement.
Investors are concerned about the impact of the decision on the wider crypto market, with crypto prices also falling as a result of the negative sentiment.
In a press announcement published late Wednesday, Silvergate Capital confirmed that it will be issuing full repayments of all customer deposits. The company has assured customers that their funds are safe and that they will receive their money back in full.
The decision to wind down the crypto bank is a major blow for Silvergate Capital, which has been a key player in the crypto industry for several years. The company has been known for its crypto-friendly approach and has attracted a large number of customers in the sector.
However, the collapse of FTX has had a significant impact on Silvergate Capital’s financial position, leading to the decision to wind down its operations. The company has not yet provided any further details on the timeline for the wind-down process.
The news is likely to have wider implications for the crypto industry, with investors and customers alike concerned about the impact on the sector. It remains to be seen how the market will react in the coming days and weeks, but the decision by Silvergate Capital is likely to have a significant impact on the industry as a whole.
