- Silvergate Capital announced Wednesday that it will wind down operations and liquidate Silvergate Bank.
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Silvergate Capital announced Wednesday that it will wind down operations and liquidate Silvergate Bank. The company’s shares are down more than 25% in after-market trading.
Silvergate is one of the two main crypto banking giants. The other is New York-based Signature Bank, which has more than $114 billion in total assets. Silvergate has just over $11 billion.
“In light of recent industry and regulatory developments, Silvergate believes that an orderly winding down of the bank’s operations and a voluntary liquidation of the bank is the best way forward,” the company said in a statement.
All deposits will be refunded in full, according to a liquidation plan shared on Wednesday afternoon. However, it is unclear how the crypto-friendly bank plans to resolve claims against its operations.
Centerview Partners will act as Silvergate’s financial advisor and Cravath, Swaine & Moore will provide legal services.
The announcement comes a week after Silvergate said it would delay reporting its annual earnings for 2022 while it sorted out the “viability” of the business. The company disclosed that the delayed 10-K filing was due in part to an impending regulatory crackdown, including an investigation already underway by the Justice Department.
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