Parent Company Liquidates Cryptocurrency Silvergate Bank

Silvergate Capital Corporation has announced the winding up and liquidation of Silvergate Bank, a crypto-currency bank. This was announced in a statement on the company’s website. Silvergate Bank is one of the largest cryptocurrency banks in the US, along with Signature Bank, a partner of the Binance US cryptocurrency exchange.

“In light of recent industry and regulatory developments, Silvergate believes that the Bank’s planned winddown and voluntary liquidation is the best course of action,” reads a statement. message companies. On March 3, the Silvergate Exchange Network was suspended.

The liquidation plan provides for the full repayment of all deposits. The Company is also considering how best to resolve claims and preserve the residual value of the assets.

January 22 The Wall Street Journal reportedthat cryptocurrency banks Silvergate Capital and Signature Bank borrowed more than $13 billion in the fourth quarter of 2022 to make up for losses from the mass exit of customers from the cryptocurrency market.

The main reason for the fall in bank deposits was the bankruptcy of the FTX Group in November 2022. As a result, the share of cryptocurrency clients of Silvergate Bank in the total volume of deposits fell in the fourth quarter from 25% to 15%, and the average size of deposits amounted to $7.3 billion against $12 billion in the third quarter.

Anastasia Larina