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Silvergate Capital announced on Wednesday that it will cease operations and liquidate Silvergate Bank. The company’s shares fell more than 25% in after-hours trading.
Silvergate is one of the two major crypto banking giants. The other is New York-based Signature Bank, which has more than $114 billion in total assets. Silvergate has just over $11 billion.
“In light of recent industry and regulatory developments, Silvergate believes that an orderly shutdown of the Bank and a voluntary liquidation of the Bank is the best way forward,” the company said. in a statement.
All deposits will be refunded in full, according to a shared liquidation plan Wednesday afternoon. However, it remains unclear how the crypto-friendly bank plans to deal with claims against its business.
Centerview Partners will act as financial advisors to Silvergate and Cravath, Swaine & Moore will provide legal services.
The announcement comes a week after Silvergate said it would postpone its annual earnings report for 2022 while sorting out the “viability” of its business. The company revealed that the delayed 10-K filing was due in part to an impending regulatory crackdown, including an investigation already underway by the Justice Department.
This is breaking news. Please check back for updates.
