Silvergate Capital Corporation, the company behind Silvergate Bank, has just announced it intends to suspend its operations and liquidate the bank.
According to the statement shared by the company:
"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 plan calls for a full refund of deposits. The firm is also exploring ways to settle claims and preserve the residual value of assets, including proprietary technology.
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Silvergate announced on March 3 the termination of its payments network SEN. However, all other deposit-related services continue to operate during the shutdown period.
US Senator Elizabeth Warren has said on the announcement:
"Silvergate Bank's failure is disappointing, but predictable. I warned of Silvergate's risky, if not illegal, activity—and identified severe due diligence failures."
According to her, regulators should take action against the risks associated with cryptocurrencies.