On Wednesday, March 8, Silvergate Corporation, the parent firm of troubled crypto-friendly bank Silvergate Capital, announced its intentions to wind down the operations as well as liquidate the bank, voluntarily.
This latest development comes as the bank has been facing major operational headwinds following the collapse of the crypto exchange FTX. In its press release, Silvergate Corp. stated that the winding down of operations shall occur in accordance with the applicable regulatory processes.
Last week itself, the Group made a decision itself to discontinue the Silvergate Exchange Network (SEN). Amid the current winding down, the bank said that its deposit-related services shall remain operational.
Ahead of announcing its decision to wind down operations, there were reports that Silvergate is working with FDIC officials to get itself out of this financial turmoil. However, the recent announcement has drawn comments from regulators. Senator Sherrod Brown, chair of the Senate Banking, Housing, and Urban Affairs Committee, said.
Senator Elizabeth Warren, a major Wall Street critic also warned of the dangers posed to the financial system. She also stated that regulators should step up measures to address crypto risks.
In the aftermarket hours, the stock price of Silvergate Capital (NYSE: SI) tanked by another 50% ending at $2.76.
