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Silvergate Capital announced on Wednesday that it will wind down operations and liquidate Silvergate Bank. The company’s stock is down more than 25% in after-hours trading.
Silvergate is one of the two main crypto banking giants. The other is the New York-based Signature Bank which has more than $114 billion dollars in total assets. Silvergate has just over $11 billion.
“In 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,” the company said in a statement.
All deposits will be fully repaid, according to a liquidation plan shared on Wednesday afternoon. It is unclear, however, how the crypto-friendly bank plans to resolve claims against its business.
Centerview Partners will act as Silvergate’s financial advisor and Cravath, Swaine & Moore will provide legal services.
The announcement comes one week after Silvergate said it would be putting off reporting its annual earnings for 2022 while it sorted out the “viability” of its business. The company disclosed that the delayed 10-K filing was partly due to an imminent regulatory crackdown, including a probe already underway by the Department of Justice.
This is breaking news. Please check back for updates.
Source link: https://www.cnbc.com/2023/03/08/silvergate-shutting-down-operations-and-liquidating-bank.html