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Crypto-friendly bank Silvergate (Calif.) is shutting down all its financial operations and initiating repayment of depositors.

With this, another leading company in crypto land capsizes.

In the news: The publicly traded group Silvergate Capital announces the liquidation of Silvergate Bank. It says it is doing so on its own initiative.

Quoted: "In light of recent industry and regulatory developments, Silvergate believes that an orderly wind-down of the bank's operations and a voluntary liquidation of the bank is the best solution."

The details:

  • Silvergate used to be an ordinary local bank in California, but surprisingly emerged about six years ago as a very crypto-friendly institution willing to facilitate the rapidly growing crypto platforms.
  • The current problems at Silvergate are an offshoot of the . That collapse led to an outflow of customers and capital at Silvergate Bank.
  • Silvergate Bank already shut down its payments platform on March 3. Now the California bank is going one step further, liquidating all operations.
  • That Silvergate Exchange Network (SEN) was a major transaction site for major players in the crypto world. It enabled transfers 24 hours a day, which is ideal for crypto markets, which are open around the clock.
  • Among others, crypto platform Coinbase and Alameda, FTX's sister company, were major customers of Silvergate.
  • But after Coinbase and others announced in recent days that they would no longer conduct transactions to and from Silvergate, confidence in the bank was completely lost.
  • The bank's liquidation will now be done "in an orderly fashion," with "all deposits fully refunded," assures parent group .

Stock market reaction:

  • Silvergate Capital's share price has already been under pressure in recent days and is taking another hit of about 44 percent in preliminary pre-trading.
  • Bitcoin, the largest crypto currency, has been suffering for some time at Silvergate, dropping below the $22,000 mark in recent hours.

© The Content Exchange, source News