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Silvergate Capital announced on Wednesday that it will wind down operations and liquidate Silvergate Bank. The company’s stock is down more than 40% in after-hours trading.
Silvergate is one of the two main crypto banking giants. The other is the New York-based Signature Bank which has more than $114 billion dollars in total assets. Silvergate has just over $11 billion.
“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 company said in a statement.
All deposits will be fully repaid, according to a liquidation plan shared on Wednesday afternoon. It is unclear, however, how the crypto-friendly bank plans to resolve claims against its business.
Centerview Partners will act as Silvergate’s financial advisor and Cravath, Swaine & Moore will provide legal services.
This is breaking news. Please check back for updates.
