Silvergate Capital will liquidate its assets and close down its banking arm due to the crypto bear market.
The company lost around $1 billion during the FTX collapse and has since struggled to stay afloat during the harsh crypto market.
Silvergate’s bank was one of the only crypto-friendly banks in the industry.
Silvergate Capital to shut down due to harsh crypto market
The crypto-friendly bank’s stock price has fallen over 90% since March 2022. The company announced that voluntarily bowing out of the market would be the best course of action to take.
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 bank’s wind down and liquidation plan includes full repayment of all deposits.
The company took a huge loss during the FTX collapse. Other companies such as BlockFi, Genesis Trading, Galaxy Digital, Voyager Digital and Crypto.com were also affected by FTX’s demise. Luckily, bankrupt Voyager Digital managed to settle an acquisition deal with Binance US.
Silvergate Capital was the parent company of Silvergate Bank. Silvergate provided financial services to the cryptocurrency industry and digital assets. Based in California the company was a state-chartered bank.
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