"Perhaps this is the best way for Silvergate to survive?"
Silvergate Capital, a cryptocurrency-friendly bank that is a subsidiary of Silvergate Corporation intends to cease operations and voluntarily liquidate the bank after facing major operational problems following the fall of FTX.
The streak, Silvergate informed that the winding down of operations will be carried out in accordance with the regulatory process.
Silvergate believes liquidation of the bank is the best course of action, but the company will continue to repay all deposits and consider the best way to settle claims and preserve the value of its remaining assets.
Before announcing the decision to cease operations, there were reports that Silvergate was working with officials of the Federal Deposit Insurance Corporation (FDIC) to resolve the financial problems facing them.
However, Senator Sherrod Brown commented that banks should not rely too much on a volatile sector like crypto as it could pose a risk to the entire financial ecosystem.
While Senator Elizabeth Warren, who is a strong critic of Wall Street, said regulators need to move quickly to deal with crypto risks.
Last week, the company also decided to stop the Silvergate Exchange Network (SEN) but deposit-related services were found to continue operating.
