SAN FRANCISCO, March 9 — Crypto banking colossus Silvergate on Wednesday said it will shut down in the face of market turmoil and regulatory pressure.
“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 parent company said in a release.Shares in California-based Silvergate Capital, which had been slipping in recent weeks, plunged more than a third in value in after market trades.
US officials are cracking down on the cryptocurrency sector after the uproar caused by the recent bankruptcy of FTX and Alameda Research. FTX was a client of Silvergate Capital, which reported a billion dollar loss in the final three months of last year as deposits shrank by more than half.