Crypto-friendly bank Silvergate Bank announced that it will orderly end its banking operations and voluntarily liquidate in accordance with applicable regulatory procedures. Silvergate Bank stated that in view of recent industry and regulatory developments, orderly closure of business and voluntary liquidation is the best way forward. The plan includes full repayment of all deposits. The company is also considering how to best resolve claims and preserve the remaining value of its assets, including its proprietary technology and tax assets. Its general Centerview Partners LLC served as financial advisor, Cravath, Swaine & Moore LLP served as legal advisor, and Strategic Risk Associates provided transition project management assistance. In addition, Silvergate Bank decided to stop the Silvergate Exchange Network (SEN), and all other deposit-related services will remain in operation during the company's liquidation process. Earlier, Silvergate Bank announced last week that it would postpone the submission of its annual 10-K report for fiscal year 2022, and the company is analyzing certain regulatory inquiries and investigations related to the company.
📌 Coinbase (https://twitter.com/coinbase): We are sorry to see Silvergate make the difficult decision to wind down their operations in an orderly manner. Silvergate is a partner and contributor to the growth of the crypto economy. Coinbase has no customer or corporate cash on Silvergate.
📌 California Department of Financial Protection and Innovation (DFPI) (https://twitter.com/CaliforniaDFPI): We are sorry to see Silvergate make the difficult decision to wind down their business in an orderly manner. Silvergate is a partner and contributor to the growth of the crypto economy. Coinbase has no customer or corporate cash on Silvergate.
📌 Adam Cochran (https://twitter.com/adamscochran): Rumor has it that the Silvergates liquidation will not include the bank's charter (which usually happens when regulators uncover some sort of wrongdoing), which, if true, would be brutal for shareholders as that's the only truly valuable asset.
