Crypto-focused bank Silvergate is shutting operations and liquidating after market meltdown

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Shares of Silvergate Capital are plunging after the company announced it will wind down operations and liquidate its bank. What does the collapse mean for the crypto industry? KenzieSigalos reports.

that it's winding down operations and liquidating its bank. The stock plunged more than 36% in after-hours trading.. Silvergate has just over $11 billion in assets, compared with over $114 billion at Signature. Bankrupt crypto exchange FTX was a major Silvergate customer.

All deposits will be fully repaid, according to a liquidation plan shared on Wednesday. The company didn't say how it 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 liquidation comes less than a week after Silvergate discontinued its payments platform known as the Silvergate Exchange Network, or SEN, which was considered to be one of its core offerings. As part of the liquidation announcement, Silvergate clarified that all other deposit-related services remain operational as the company winds down. Customers will be notified should there be any further changes.of its annual 10-K for 2022 while it sorted out the "viability" of its business.

Silvergate also attributed the delay to Congressional inquiries, as well as investigations from its banking regulators, which include the Federal Reserve and the California Department of Financial Protection and Innovation.and Galaxy Digital raced to cut ties with Silvergate last week after the bank warned that it was unsure whether it could stay in business.

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