Crypto bank Silvergate Capital said it is shutting down its operations and liquidating the bank.
The firm helped institutional investors move fiat currency in and out of crypto-trading platforms through its Silvergate Exchange Network. Following the announcement, Silvergate shares plunged more than 30% in extended trading on Wednesday.
- In a statement, Silvergate pointed to recent industry and regulatory developments as the reason behind closing its operations.
- Last Friday, the bank suspended its payments platform Silvergate Exchange Network (SEN), one of its primary offerings.
- Silvergate said deposits would be paid back in full; the crypto bank had about $11B in assets.
- Centerview Partners will act as Silvergate’s financial advisor, and Cravath, Swaine & Moore will provide legal services.
