Crypto-friendly bank Silvergate decides to wind down operations and undergo liquidation.
Just yesterday, it was reported that representatives from the Federal Deposit Insurance Corporation (FDIC) visited the headquarters of Silvergate Capital Corp. in the United States to discuss strategies to prevent insolvency or improve liquidity. Later on, Silvergate Bank released a press statement announcing its intention to cease its banking operations and proceed with an orderly voluntary liquidation of the bank in accordance with applicable regulatory procedures.
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Within just a week, the U.S. crypto-friendly bank Silvergate went from failing to deliver financial reports to announcing its decision to wind down operations and liquidate the bank.
In a press release, Silvergate stated that, given recent industry and regulatory developments, it believes that winding down its banking operations and liquidating the bank is the best course of action. The bank's liquidation plan includes full repayment of all deposits. The company is also evaluating ways to resolve claims and preserve the remaining value of its assets, including its proprietary technology and tax assets.
Silvergate will engage Centerview Partners LLC as financial advisor, Cravath, Swaine & Moore LLP as legal counsel, and Strategic Risk Associates to assist with the transition plan.
Silvergate Bank had already announced the termination of the Silvergate Exchange Network SEN services on March 3, with other deposit-related services continuing, and stated that customers will be promptly notified of any further changes.