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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
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 onMarch 3 . Now theCalifornia 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 andAlameda , 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