Silvergate, the cryptocurrency bank, announces its closure and liquidation

The American firm Silvergate Capital has announced that it is going to close and liquidate its bank specialized in cryptocurrencies, Silvergate Bank, which in recent days had collapsed on the stock market after admitting problems to continue operating as a result of the difficulties that the sector is going through. “In light of recent industry and regulatory events, Silvergate believes that an orderly closure of the bank’s operations and a voluntary liquidation of the bank is the best path,” the La Jolla, California-based company said in a statement. , USA)

X-ray of a collapse: this is how two trillion invested in cryptocurrencies have volatilized


Silvergate says the closure and liquidation plan “includes the full refund of all deposits” and also said it is studying how to settle claims and preserve the residual value of its assets, including its proprietary technology. The announcement came after Silvergate told the stock market regulator last week that it would not be able to submit its 2022 annual report on time and noted that it was evaluating its ability to continue operating.

That information sank the company’s shares, which today plummeted again in electronic operations after the closing of Wall Street, once the new announcement was known. The bank has been affected, among other things, by the collapse of the FTX cryptocurrency platform and is being investigated by US authorities for its business with that firm and its investment arm, Alameda Research.

FTX and Alameda are charged with fraud and several of their managers have already pleaded guilty, while their former top manager, Sam Bankman-Fried, is on probation awaiting trial.

In the midst of a crisis of confidence in the sector, Silvergate – one of the few entities in the United States specialized mainly in the crypto business – has already been forced to divest shares to satisfy the withdrawals of funds from cryptocurrency users. According to its provisional accounts, Silvergate suffered a net loss of almost 1,000 million dollars in 2022, compared to profits of 75.5 million the previous year.

Related articles

They follow Messi: FIFA also packs his suitcases and disembarks in Miami

Since Lionel Messi moved all his talent to Miami, the eyes of the world are on what is happening with Inter Miami. Following...

The tantalizing scent of rain or freshly baked bread: why can certain smells transport...

My father was a carpenter, meaning I have spent a great deal of my life surrounded by wood, saws, plans...