The official notice from the Federal Reserve Board (FRS) announces the agreement of Silvergate Capital Corporation and Silvergate Bank to voluntarily liquidate, taking into account all the requirements of the regulator and the US Deposit Insurance Agency (FDIC).
The Fed says that it was Silvergate’s digital asset industry-related business strategy that was the prelude to the bank’s collapse and “led to a funding and liquidity gap for the bank,” as well as a reduction in key sources of income.
Silvergate Capital and Silvergate Bank are prohibited from distributing capital, using cash, or engaging in core banking activities without regulatory approval. Since the Silvergate executives have voluntarily agreed to all elements of the enforcement action, the regulator will independently approve future personnel changes, as well as executive bonuses or severance pay.
Earlier in the European media, data was published that the collapse of Silvergate and Signature Bank led to increased demand from financial services companies servicing clients from the cryptocurrency industry for digital asset compliance specialists.
Source: Bits

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