Silvergate Capital to enter voluntary liquidation

It comes after it was hit with losses following the collapse of crypto exchange FTX, sending its shares down 35% in after-hours trade. Last week, it said it was “evaluating its ability” to operate as a going concern, adding that it had sold additional debt securities at a loss and further losses meant it could be “less than well capitalised.”  

In its latest statement, Silvergate said: “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.”  

Off the back of this, it has said that Centerview Partners is acting as the firm’s financial advisor, Cravath, Swaine & Moore is acting as its legal advisor while Strategic Risk Associates is providing transition project management assistance.  

Additionally, the firm has made a decision to discontinue the Silvergate Exchange Network, however all other deposit-related services will remain operational as the firm works through the wind down process.