Silvergate Capital is Liquidating its Crypto Bank
Main page News, Banking, Cryptocurrency
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March 9, 2023

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.

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