The Strategist

Silvergate Capital Corporation liquidates its cryptocurrency bank after FTX collapse

03/10/2023 - 10:41

Silvergate Capital Corporation stated that it is closing down and liquidating operations of its cryptocurrency bank Silvergate Bank.
Silvergate Bank, a partner of Binance US, was one of the biggest cryptocurrency institutions in the United States on par with Signature Bank.

Silvergate stated that it "believes that an orderly wind-down of the bank's operations and voluntary liquidation is the best move" in view of recent regulatory and industry changes. Operations for the Silvergate Exchange Network were stopped on March 3.

The liquidation plan stipulates that all investments shall be repaid in full. The business is also considering the best ways to resolve disputes and protect the remaining worth of the assets.

The Wall Street Journal reported on January 22 that Silvergate Capital and Signature Bank, two cryptocurrency institutions, borrowed more than $13 billion in the fourth quarter of 2022 to cover losses resulting from the widespread exodus of cryptocurrency users after FTX collapsed.