{"id":75246,"date":"2023-03-09T10:52:24","date_gmt":"2023-03-09T08:52:24","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=75246"},"modified":"2025-09-10T10:33:18","modified_gmt":"2025-09-10T07:33:18","slug":"silvergate-to-liquidate-silvergate-bank","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/silvergate-to-liquidate-silvergate-bank\/","title":{"rendered":"Silvergate to liquidate Silvergate Bank"},"content":{"rendered":"<p>Silvergate Capital Corporation, the holding company for Silvergate Bank, <a href=\"https:\/\/www.businesswire.com\/news\/home\/20230308005795\/en\/\">announced<\/a> plans to wind down operations and liquidate the bank.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;In light of recent industry and regulatory developments, Silvergate believes that an orderly wind-down of the bank\u2019s operations and voluntary liquidation is the best way forward,&#8221; the company said in a statement.<\/p>\n<\/blockquote>\n<p>The plan calls for full reimbursement of deposits. The firm is also exploring ways to best settle claims and preserve residual asset value, including its own technologies.<\/p>\n<p>Centerview Partners LLC acts as financial adviser. Legal counsel is provided by Cravath, Swaine &#038; Moore LLP, and Strategic Risk Associates provides investment-management services.<\/p>\n<p>Silvergate reminded that on March 3 it also announced the termination of its payment network, <span data-descr=\"Silvergate Exchange Network\" class=\"old_tooltip\">SEN<\/span>. However, other deposit-related services will continue to operate during the wind-down.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;As the bank of choice for crypto, Silvergate Bank\u2019s failure is disappointing, but predictable. I warned of Silvergate\u2019s risky, if not illegal, activity\u2014and identified severe <span data-descr=\"due diligence procedure\" class=\"old_tooltip\">due diligence<\/span> failures. Now, customers must be made whole, and regulators should step up against crypto risk.&#8221;<\/p>\n<p>\u2014 Elizabeth Warren.<\/p><\/blockquote>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">As the bank of choice for crypto, Silvergate Bank\u2019s failure is disappointing, but predictable. I warned of Silvergate\u2019s risky, if not illegal, activity\u2014and identified severe due diligence failures. Now, customers must be made whole &#038; regulators should step up against crypto risk.<\/p>\n<p>\u2014 Elizabeth Warren (@SenWarren) <a href=\"https:\/\/twitter.com\/SenWarren\/status\/1633611272372486144?ref_src=twsrc%5Etfw\">March 8, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to her, regulators should take action against crypto-related risks. Her colleague, Sherrod Brown, expressed a similar view.<\/p>\n<p>In response to his remarks, Caitlin Long, founder and CEO of Custodia (formerly Avanti), noted that the bank&#8217;s problem was not cryptocurrencies but a cash gap between demand deposits ($13.3 billion) and cash on hand ($1.4 billion).<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">.@SenSherrodBrown, you\u2019re wrong that #crypto triggered Silvergate\u2019s issue. What did it was $13.3bn in demand deposits that depositors cld withdraw in minutes, but only $1.4bn of cash. Had $SI held $13.3bn of cash, the bank run wouldn\u2019t have impaired its capital. Not a crypto\u2026 <a href=\"https:\/\/t.co\/nGlfHwUcBN\">https:\/\/t.co\/nGlfHwUcBN<\/a><\/p>\n<p>\u2014 Caitlin Long ?\u26a1\ufe0f? (@CaitlinLong_) <a href=\"https:\/\/twitter.com\/CaitlinLong_\/status\/1633608132713938945?ref_src=twsrc%5Etfw\">March 8, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In February, it emerged that the U.S. authorities <a href=\"https:\/\/forklog.com\/en\/news\/us-authorities-to-probe-silvergates-ties-to-ftx-and-alameda-research\">investigate the link<\/a> between Silvergate Bank and the victims of <a href=\"https:\/\/forklog.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\">the collapse of FTX and Alameda Research<\/a>. Moody\u2019s <a href=\"https:\/\/forklog.com\/en\/news\/moodys-downgrades-silvergate-bank-rating\">downgraded the institution\u2019s rating<\/a> due to a shrinking baseline credit assessment.<\/p>\n<p>On March 2, Silvergate Capital Corporation delayed the publication of its annual report with the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span>. This led to a sell-off in the company\u2019s shares and sparked rumors about the solvency of the subsidiary bank.<\/p>\n<p>Major crypto firms such as Tether, Galaxy Digital, Paxos, Gemini, Coinbase and Bakkt <a href=\"https:\/\/forklog.com\/en\/news\/crypto-firms-distance-themselves-from-silvergate-amid-bankruptcy-rumors\">distanced themselves<\/a> from the institution.<\/p>\n<p>In the wake of the bank\u2019s liquidation announcement, Marathon Digital Holdings said it would repay its $50 million term loan from Silvergate and close its credit line. The firm retrieved 3,132 BTC from collateral, worth about $68 million.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">Marathon Digital Holdings has repaid its term loan and terminated its credit facilities with Silvergate Bank, reducing Marathon\u2019s debt by $50 million and increasing the Company\u2019s unrestricted bitcoin holdings by 3,132 BTC. Read our full update here: <a href=\"https:\/\/t.co\/tihTTagfhR\">https:\/\/t.co\/tihTTagfhR<\/a><\/p>\n<p>\u2014 Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) <a href=\"https:\/\/twitter.com\/MarathonDH\/status\/1633594697775185921?ref_src=twsrc%5Etfw\">March 8, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to reports, banks <a href=\"https:\/\/forklog.com\/en\/news\/regulatory-pressure-shifts-banks-stance-on-crypto-wsj-reports\">are ending their cooperation<\/a> with crypto firms amid concerns about regulatory crackdowns.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Silvergate Capital Corporation, the holding company for Silvergate Bank, announced plans to wind down operations and liquidate the bank.<\/p>\n","protected":false},"author":1,"featured_media":75247,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1683],"class_list":["post-75246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-silvergate-bank"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/75246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=75246"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/75246\/revisions"}],"predecessor-version":[{"id":75248,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/75246\/revisions\/75248"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/75247"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=75246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=75246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=75246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}