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Crypto Bank Silvergate Repays Deposits as Part of Liquidation Plans

source-logo  coinedition.com 23 November 2023 08:50, UTC

Silvergate Capital, a cryptocurrency-focused bank, announced on Wednesday it had fully reimbursed all remaining deposit liabilities, Reuters reported. The recent move follows the bank’s decision to cease operations earlier this year.

According to the report, Silvergate announced in March that it intended to voluntarily liquidate after suffering losses as a result of the sudden collapse of crypto exchange FTX. Presently, the bank possesses less than $10,000 in holdings.

In a statement, the company reiterated its commitment to the planned liquidation. “Silvergate continues to focus on implementing the Bank Liquidation,” it said.

The bank, once an industry favorite, was badly hit by the FTX collapse that worsened already bearish conditions in the crypto market last year. As noted in the report, investors scared off by the FTX catastrophe withdrew more than $8 billion in deposits from Silvergate. As a result, the bank declared a $1 billion quarterly loss before the decision to wind down.

According to the report, the crypto market in 2022 lost over $1 trillion in value. Alongside multiple institutional collapses, rising interest rates and worries also added to the bearish turn.

Meanwhile, conditions in the crypto market appear to have stabilized, fueled mainly by speculation around the U.S. Securities and Exchange Commission potentially approving a spot Bitcoin ETF for the first time. While major tokens started the week slowly, they have regained profits lost during the slowdown.

Turning to cryptocurrency data tracker CoinMarketCap, Bitcoin has added over 2% gain in the past 24 hours. At press time, the token was exchanging hands at $37,286 apiece. Likewise, Ether’s price increased by over 3% within the same period.

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