2023-03-10
Silvergate Capital Corporation is the parent company of Silvergate Bank, it listed on the New York Stock Exchange (NYSE). Silvergate Bank, one of the big crypto banks announces that it will cease operation. It will shutdown the business that it had been doing for 35 years. Crypto bank Silver Gate started lending crypto asset business in 2013. The company’s share price has continued to plummet from its peak of nearly $240 a share to just $2.84 a share, down 99 percent. The bank will return all deposits back to customers and creditors. Silvergate Bank will also terminate its crypto payment network.
Silvergate was established in 1988 to provide loans to businesses. The company started crypto bank business in 2013. Since 2013 crypto business had been continued to grow, Silvergate Capital went public in 2019. As of September 30, 2022, it had $11.9 billion in digital assets deposited through Silvergate Exchange Network.
Previously, Silvergate Capital
partnered with FTX. It deposited assets in FTX. So, when FTX went bankrupt, it
did not get refund. Silvergate Capital announced in a statement released in November 2022
that it deposited customer assets in FTX amounted to less than 10% of total
assets. Its total asset valued $11.9 billion which means it deposited about
$1.19 billion worth of assets in FTX. The
collapse of FTX reduced the value of digital assets deposited in Silvergate
bank to just $3.8 billion. Customers have withdrawn more than $8
billion from Silvergate bank since the collapse of FTX.
