Silvergate Bank will halt operations and liquidate assets

Silvergate Bank will wind down and see its assets liquidated, according to a March 8 press release from holdings company Silvergate Capital.

Silvergate said that this course of action will involve a full repayment of all deposits. It also said that it is exploring how it can resolve claims and ensure the continued residual value of assets such as proprietary technology and tax assets.

The company said that it made this decision in light of “recent industry and regulatory developments” without naming any specific events.

Silvergate did not state whether it will submit a bankruptcy filing.

On March 3, Silvergate submitted an SEC filing stating that it would file a late 10-K report. In that filing, it also said that it faced a probe from regulators such as the DOJ.

Several major crypto companies soon stopped using the bank’s services. Silvergate later announced that it would halt its Silvergate Exchange Network (SEN).

Silvergate’s stock has been on a downward trend since last week. The value of Silvergate (SI) is down 5.76% today and down 63% since March 1.

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