Silvergate Sunsets Crypto Network Amid Customer Exodus
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Silvergate Capital Corporation (COMEX: SI), a registered bank holding company for Silvergate Bank, has suspended its crypto payments network dubbed the Silvergate Exchange Network.

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The California-based company noted in a statement on its website that the "risk-based decision" doesn't impact other deposit-related services. However, the company didn't explain the reason behind the move.

Silvergate Bank used the network to accept and send USD or EUR from and to institutional clients between their accounts. The network handled over $117 billion of US dollar transfers in Q4 2022, a decrease of 47% compared to $219.2 billion in Q4 2021.

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The suspension comes shortly after many crypto companies, including Coinbase, Kraken, Galaxy Digital and many others, cut ties with Silvergate after the company had said in a filing with the US Securities and Exchange Commission it might be "less than well capitalized" due to its debts. After the news broke, Silvergate shares plunged by over 50% to $5.7, according to data from the New York Stock Exchange.

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