MARCH 8, 2023 — SILVERGATE BANK TO BE SHUT DOWN
Silvergate Capital Corporation Announces Intent to Wind Down Operations and Voluntarily Liquidate Silvergate Bank
Silvergate Capital Corporation, the holding company for Silvergate Bank, today announced its intent to wind down operations and voluntarily liquidate the Bank in an orderly manner and in accordance with applicable regulatory processes.
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 Bank’s wind-down and liquidation plan includes full repayment of all deposits. The Company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets.
In connection with the above: Centerview Partners LLC is acting as a financial advisor, Cravath, Swaine & Moore LLP is acting as a legal advisor and Strategic Risk Associates is providing transition project management assistance.
In addition, Silvergate Bank made a decision to discontinue the Silvergate Exchange Network, which it announced on March 3, 2023, on its public website. All other deposit-related services remain operational as the Company works through the wind-down process. Customers will be notified should there be any further changes.
JANUARY 10, 2023 — Original post…
La Jolla, California-based Silvergate Capital, the holding company for Silvergate Bank which focuses on providing a payment network and other services to institutions in the virtual-currency industry, has announced a major reduction in force following major disruptions in the crypto-currency market leading to the loss of customer confidence.
The company's cost-containment initiative will target approximately 40% of the workforce, an estimated 200 employees.
According to CEO Alan Lane, "Significant overleverage in the industry has led to several high-profile bankruptcies and sparked a crisis of confidence across the entire digital asset ecosystem.
In addition to its crypto-related business, the bank announced in December 2022 that it was winding down its mortgage warehouse lending business due to the rising interest rate environment and reduction in mortgage volumes.
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