{"id":18478,"date":"2023-03-08T22:45:59","date_gmt":"2023-03-08T22:45:59","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/silvergate-bank-announces-voluntary-liquidation-as-crypto-industry-woes-persist-bitcoin-news\/"},"modified":"2023-03-08T22:45:59","modified_gmt":"2023-03-08T22:45:59","slug":"silvergate-bank-announces-voluntary-liquidation-as-crypto-industry-woes-persist-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/silvergate-bank-announces-voluntary-liquidation-as-crypto-industry-woes-persist-bitcoin-news\/","title":{"rendered":"Silvergate Bank Announces Voluntary Liquidation as Crypto Industry Woes Persist \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

At 4:30 p.m. Eastern Time, Silvergate Bank announced its intention to wind down the crypto-friendly bank\u2019s operations and voluntarily liquidate the company\u2019s assets. The news follows significant financial troubles the bank faced, and the firm\u2019s stock plummeted in value.<\/strong><\/p>\n

Details of Silvergate\u2019s Wind Down and Liquidation Plan<\/h2>\n

Over the last six months, Silvergate Capital Corporation\u2019s (NYSE: SI<\/a>) stock dropped 94.82% against the U.S. dollar as the company faced significant financial troubles tied to its exposure to the now-defunct crypto exchange FTX<\/a>. On Wednesday, March 8, 2023, the company announced it was winding down operations and plans to liquidate the bank. Four days ago, Silvergate discontinued<\/a> the firm\u2019s Silvergate Exchange Network payment platform.<\/p>\n

\u201cIn light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of bank operations and a voluntary liquidation of the bank is the best path forward,\u201d the company\u2019s press release<\/a> detailed. \u201cThe bank\u2019s wind down and liquidation plan includes full repayment of all deposits. The company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets,\u201d Silvergate\u2019s statement added.<\/p>\n

Silvergate\u2019s stock closed Wednesday at $4.91 per share<\/a> after the stock shed 40.99% in USD value over the last five days. Last week, it told the U.S. Securities and Exchange Commission (SEC) that it had to delay its annual fiscal earnings report, and the bank\u2019s stock was downgraded<\/a> by banking giant JPMorgan. In the filing, Silvergate mentioned its \u201cability to continue as a going concern,\u201d and it also noted that it faced regulatory scrutiny from U.S. officials. After the stock downgrade, large crypto firms such as Circle, Crypto.com, Gemini, Paxos, and Coinbase distanced themselves from the crypto-friendly bank.<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
asset preservation<\/a>, bank operations<\/a>, banking giant JPMorgan<\/a>, Circle<\/a>, Coinbase<\/a>, crypto exchange FTX<\/a>, crypto-friendly banking<\/a>, Crypto.com<\/a>, deposit repayment<\/a>, Financial Troubles<\/a>, Gemini<\/a>, industry developments<\/a>, large crypto firms<\/a>, liquidation plan<\/a>, Paxos<\/a>, payment platform<\/a>, proprietary technology<\/a>, regulatory scrutiny<\/a>, residual value<\/a>, SEC<\/a>, SI<\/a>, SI stock<\/a>, Silvergate Bank<\/a>, Silvergate Capital Corporation<\/a>, stock downgrade<\/a>, tax assets<\/a>, US Securities and Exchange Commission<\/a>, USD value<\/a>, voluntary liquidation<\/a>, wind down plan<\/a><\/div>\n<\/div>\n

What impact will the voluntary liquidation of Silvergate Bank have on the broader cryptocurrency industry? Share your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

\n
\n\n<\/div>\n
\n
\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n