Crypto-focused bank Silvergate Capital Corp said on Wednesday it planned to wind down operations and voluntarily liquidate after it was hit with losses following the dramatic collapse of crypto exchange FTX, sending its shares down 35% in after-hours trade.
The decision to shutter the bank comes after the company warned last week that it was evaluating its ability to operate as a going concern, disclosing that it had sold additional debt securities this year at a loss and that further losses mean the bank could be less than well capitalized.
In a statement, Silvergate said the decision to wind down its bank was the best path forward in light of recent industry and regulatory developments. The bank added that its wind-down and liquidation plan includes full repayment of deposits. Multiple bank partners, including high-profile firms such as Coinbase Global Inc and Galaxy Digital, severed ties with Silvergate last week.
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