Silvergate shutting down operations and liquidating bank

Silvergate Capital announced connected Wednesday that it volition upwind down operations and liquidate Silvergate Bank. The company's banal is down much than 25% successful after-hours trading.

Silvergate is 1 of the 2 main crypto banking giants. The different is the New York-based Signature Bank which has much than $114 cardinal dollars successful full assets. Silvergate has conscionable implicit $11 billion.

"In airy of caller manufacture and regulatory developments, Silvergate believes that an orderly upwind down of Bank operations and a voluntary liquidation of the Bank is the champion way forward," the institution said successful a statement.

All deposits volition beryllium afloat repaid, according to a liquidation program shared connected Wednesday afternoon. It is unclear, however, however the crypto-friendly slope plans to resoluteness claims against its business.

Centerview Partners volition enactment arsenic Silvergate's fiscal advisor and Cravath, Swaine & Moore volition supply ineligible services.

The announcement comes 1 week aft Silvergate said it would beryllium putting disconnected reporting its yearly net for 2022 portion it sorted retired the "viability" of its business. The institution disclosed that the delayed 10-K filing was partially owed to an imminent regulatory crackdown, including a probe already underway by the Department of Justice.

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