It’s a new thunderclap that falls on the crypto industry. A disaster that had been brewing for a few days and which has just shaken the young financial services industry, powered by blockchain technology. Silvergate Bank, one of the few banks to embrace the crypto sphere, is out of business, suffering from its exposure to the numerous bankruptcies of crypto firms since last summer. The company “announced its intent to wind down operations and voluntarily liquidate the bank in an orderly manner and in accordance with applicable regulatory processes,” it said in a press release on Mar. 8. It continued: “In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of bank operations and a voluntary liquidation of the bank is the best path forward.” “The bank’s wind down and liquidation plan includes full repayment of all deposits. The Company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets.” According to Sheila Warren, CEO of the Crypto Council for Innovation, “this is a voluntary wind down under California law, which implies that they will be able to make depositors whole. Neither taxpayer money, nor the FDIC, are involved.” FDIC stands for the Federal Deposit Insurance Corporation, a guarantor for bank depositors.
Full story : Bitcoin, ether fall after go-to crypto bank Silvergate announces liquidation.
