“In light of recent developments in the industry and its regulation, Silvergate believes that a planned shutdown of the bank’s operations and voluntary liquidation is the best solution. The liquidation plan includes the full repayment of all deposits,” Silvergate Capital said in a press release.
All other deposit-related services will continue to operate until the closing process is completed. The press release notes that customers will be notified if any changes occur. Amid news of bank liquidation, Silvergate shares on the New York Stock Exchange (NYSE) fell by 48% – from $4.91 to $2.52.
After Silvergate reported uncertainty about the viability of its business, many cryptocurrency exchanges and companies such as Coinbase, Paxos, Circle and Gemini began to pull back from the bank. The bank also announced the termination of its network for cryptocurrency transfers Silvergate Exchange Network (SEN).
Source: Bits
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