Crypto bank Silvergate to shut down

The turmoil in the crypto sector following the collapse of crypto exchange FTX has claimed crypto-focused bank Silvergate.

Silvergate Capital Corp announced last night that it plans to wind down Silvergate Bank‘s operations and voluntarily liquidate it in an orderly fashion, after incurring losses following the dramatic collapse of FTX in November.

Silvergate is one of the few mainstream financial organisations to have focused on providing services to the cryptocurrency sector. That helped it grow rapidly until the ‘crypto winter’ began last year, when prices of crypto assets tumbled.

Silvergate announced that: “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.”