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‘Crypto Bank’ Silvergate Closed, Its Operations Liquidated



Researchers warn about use of Bitcoin as tool for money laundering / Europa Press.

Researchers warn about use of Bitcoin as tool for money laundering / Europa Press.

Silvergate Capital, a company focused on bitcoin and blockchain companies, has announced in an orderly manner the suspension and “voluntary liquidation” of Silvergate Bank, applying it to its operations as a “crypto bank.” In accordance with established regulatory procedures, we ensure that: It will refund all deposits.

“In light of recent industry and regulatory developments, Silvergate believes an orderly suspension of banking operations and voluntary liquidation of the entity is the best course of action,” the company said in a statement.

In this sense, he specified that Silvergate Bank’s reduction and liquidation plan includes a full redemption. “For all deposits.”

Meanwhile, the company is considering how best to settle claims and preserve the residual value of its assets, including proprietary technology and tax assets.

Last week, Silvergate informed the SEC that it would not be able to file its 2022 annual report on time, assessing the viability of the business and its strategy in light of the commercial and regulatory challenges it must face. I warned you. face.

Silvergate lost $948.6 million in 2022 compared to net attributable earnings of $75.5 million the year before. This has been affected by the crypto sector crisis, including the bankruptcy of the FTX platform, which has caused a significant outflow of deposits from the entity.

Thus, in the last quarter of the year, Silvergate suffered a loss of $1,049 million, in contrast to the $18.3 million profit recorded between October and December 2021.

Deposits in the fourth quarter were $6,296 million, down 56% from $14,290 million a year ago.

In fact, in the last three months of 2022 alone, Silvergate’s deposits have fallen by 52% compared to the $13.238 million recorded last September.

Silvergate shares, which began trading in 2019, closed at $13.33 on Tuesday after ending 2022 at $17.40, a far cry from the $239-plus price it listed at the end of November 2021. rice field.

Source: Diario.Elmundo

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