Digital Assets: Silvergate Announces Voluntary Liquidation
Silvergate will wind down operations and voluntarily liquidate the Bank.
Silvergate Capital Corporation (NYSE: SI) has announced its intention to wind down operations and voluntarily liquidate Silvergate Bank due to recent industry and regulatory developments. The bank’s wind down and liquidation plan includes repaying all deposits.
Meanwhile the company is weighing how best to preserve the value of its assets, including proprietary technology and tax assets.
Centerview Partners LLC, Cravath, Swaine & Moore LLP, and Strategic Risk Associates are assisting with the process.
The bank has also decided to discontinue the Silvergate Exchange Network, with all other deposit-related services remaining operational as the company works through the wind-down process.
Reports had surfaced earlier that the crypto-focused was trying to thrash out ways and means to avoid a shutdown with US Fed officials.
With key clients ending relationships with it, perhaps the liquidation process was a writing on the wall.
On March 2nd, four firms related to cryptocurrency announced that they will no longer be doing business with Silvergate Capital. These were Coinbase, Circle, Gemini, and Paxos.
Their decision was made after the bank revealed in an SEC filing that it was delaying its annual report due to ongoing investigations, and that its status as a going concern was in doubt.
Related Story: Key Crypto Players Sever Links With Silvergate Capital
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