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Cryptocurrency bank Silvergate announces its closure and liquidation

US-based firm Silvergate Capital has announced plans to close and liquidate cryptocurrency-focused bank Silvergate Bank, which has slumped on the stock market in recent days after admitting it continued to struggle as a result of operational difficulties in the sector. going. “Given recent industry and regulatory developments, Silvergate believes that an orderly closure of the bank’s operations and a voluntary liquidation of the bank is the best course of action,” the La Jolla, Calif.-based company said in a statement. , USA)

Silvergate says the closure and liquidation plan “includes a full return of all deposits” and also said it is studying how to settle claims and preserve the residual value of its assets, including proprietary technology. The announcement came after Silvergate told the stock market regulator last week that it would not be able to file its 2022 annual report on time and indicated that it was evaluating the possibility of continuing to operate.

The news plunged the company’s shares, which fell again after the close on Wall Street today after the new announcement. The bank was hit by the collapse of the FTX cryptocurrency platform, among other things, and is being investigated by US authorities over its business with the firm and its investment arm, Alameda Research.

FTX and Alameda have been accused of fraud and several of their managers have already pleaded guilty, while their former top manager, Sam Bankman-Fried, is on probation and awaiting trial.

Amid a crisis of confidence in the sector, Silvergate — one of the few entities in the United States specializing primarily in the crypto business — has already been forced to divest shares to accommodate withdrawals from cryptocurrency users. According to its interim accounts, Silvergate posted a net loss of nearly $1,000 million in 2022, compared to a profit of $75.5 million the previous year.

Source: El Diario





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