Business

Crypto banking titan Silvergate closing shop

This comes due to market turmoil, regulatory pressure from US authorities

Updated 3 years ago · Published on 09 Mar 2023 8:26AM

Crypto banking titan Silvergate closing shop
Silvergate’s impending shutdown comes as US officials crack down on the cryptocurrency sector after uproar caused by the recent bankruptcy of FTX and Alameda Research. – AFP pic, March 9, 2023

SAN FRANCISCO – Crypto banking colossus Silvergate today said it will shut down in the face of market turmoil and regulatory pressure.

Silvergate Bank opened in 1988 and started “pursuing digital currency customers” in 2013, according to its parent company Silvergate Capital Corp.

“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 parent company said in a release.

“The bank’s wind-down and liquidation plan includes full repayment of all deposits.”

Shares in California-based Silvergate Capital, which had been slipping in recent weeks, plunged more than a third in value in after market trades.

The company last week suspended its Silvergate payments network, which allowed its customers to make transfers any time of day or night.

US officials are cracking down on the cryptocurrency sector after the uproar caused by the recent bankruptcy of FTX and Alameda Research.

FTX, once the world’s highest-profile crypto exchange, collapsed spectacularly in November, leaving nine million customers in the lurch and seeing co-founder Sam Bankman-Fried indicted for fraud by US prosecutors.

FTX was a client of Silvergate Capital, which reported a billion dollar loss in the final three months of last year as deposits shrank by more than half.

In a stock exchange filing last week, Silvergate said it was delaying release of its annual report, in part because of ongoing investigations by United States authorities.

Several crypto companies including Coinbase, Paxos, and Gemini subsequently distanced themselves from Silvergate. – AFP, March 9, 2023

Related News

Malaysia / 2y

Inspector nabbed in connection with RM1.25 million extortion case

Malaysia / 2y

Supervisor loses almost RM1 mil in cryptocurrency scam

Tech / 3y

What's the carbon footprint of ChatGPT?

Business / 3y

Hackers swipe RM67 mil worth of coins from crypto exchange

Business / 3y

Montenegro says arrested Korean crypto fugitive Do Kwon

Business / 3y

Celebrities Lindsay Lohan, Jake Paul charged for touting crypto

Spotlight

Malaysia

Teacher arrested after allegedly assaulting 14-year-old student and slapping his mother

Malaysia

Untreated mental illness worsened teen’s condition, court hears

Malaysia

Anwar cherishes heartfelt painting gifted by child at Negeri Sembilan event

Malaysia

Rocky’s death: I had no intention to harm any animal – says man at the centre of storm

By Alfian Z.M. Tahir

Malaysia

Inspector, policewoman plead guilty to khalwat

Malaysia

SARA aid may be expanded to put healthier food within reach of all Malaysians

Malaysia

Rescue efforts ongoing after fisherman finds cats abandoned off Pulau Ketam (video)

By Alfian Z.M. Tahir

Malaysia

Kelana Jaya LRT train breaks down, passengers stranded on tracks (video)

By Alfian Z.M. Tahir

You may be interested

Business

Oil prices fall as markets weigh prospects of Hormuz reopening

Business

Port businesses badly hit by uncertainty over commingled oil tax – maritime expert

Business

Nation’s wholesale and retail trade surges 10.1% to RM168.5 billion

Business

Fatal Red Sea attacks spark fresh oil price spike despite diplomatic talks

Business

SC wins court leave to pursue contempt proceedings against ex-APL director

Business

Oil holds near US$81 per barrel as Hormuz standoff, softer demand outlook keeps markets on edge

Business

Govt tightens import controls to protect consumers and ensure fair competition

Business

BNM - SC accelerates sustainable finance push with ASEAN Taxonomy adoption