Troubled cryptocurrency-focused Silvergate Bank said it will “voluntarily liquidate” assets and scale back operations, holding company Silvergate Capital said on March 8. announced on the day. The deposit will be fully repaid.
“Given recent industry and regulatory developments, we believe that an orderly wind-down of banking operations and voluntary liquidation is the best course of action. The liquidation and liquidation plan includes the full repayment of all deposits. We are also considering how best to resolve claims and preserve the residual value of our assets, including proprietary technology and tax assets.”
The California Department of Financial Protection and Innovation (DFPI), where the company is headquartered, said it was monitoring the situation.
“The authorities are evaluating compliance with all financial laws and safety and soundness obligations and are working closely with relevant federal agencies,” said Clothilde Hewlett of the DFPI. Stated.
A spokeswoman for the Federal Deposit Insurance Corporation (FDIC) declined to comment.
Silvergate has been providing banking services to cryptocurrency companies since 2013. It used to offer a customer-to-customer payment tool called the Silvergate Exchange Network (SEN), but announced the shutdown of SEN late Wednesday.
When he filed for an initial public offering (IPO) in November 2018, he revealed that he has close to 500 cryptocurrency companies as clients. The IPO was completed in 2019, at which time the crypto firm had more than 750 customers.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: CoinDesk Archives
｜Original: Crypto Bank Silvergate Announces ‘Voluntary Liquidation’
The post Silvergate Bank to Voluntary Liquidation ── Deposits are fully repaid | coindesk JAPAN | Coindesk Japan appeared first on Our Bitcoin News.