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
Photo by Tina Bosse on Unsplash
Latest Alternative Investment News
Digital Assets: Ledger, Maker Of Crypto Security Hardware, Raises Nearly All Of $100M Series C Round
Paris-based startup Ledger, which makes hardware wallets for cryptocurrency investors, has raised €100m ($109m) in funding, valuing the company at €1.3bn. The round was led by investors including Digital Finance…
FinTech: Cogo And Eliq Partner To Help Banking Customers Enhance The Energy Efficiency Of Their Homes
Cogo, a fintech which collaborates with banks to assist customers in decreasing their carbon footprint as a carbon footprint management firm, is partnering with Eliq, a company that specializes in…
Venture Capital: The LSP Dementia Fund Closes €260M (US$283M) To Address Dementia, One Of The Most Significant Health Crises Of Our Era
The LSP Dementia Fund has reached a final close at €260 million (US$ 283 million), surpassing its initial target of €100 million. The fund, which is managed by EQT Life…
Artificial Intelligence: The DAGGER AI Model Gives Advance Warning Of Dangerous Solar Storms
Researchers have developed an AI-based model that combines satellite data and machine learning to predict where an impending solar storm will strike on Earth, offering 30 minutes of advance warning….