After long negotiations with the FDIC, Silverlake Bank, which had gone all in on be THE cryptocurrency bank in the United States, is liquidating to pay depositors.
Gee, going balls to the wall on a transparent fraud in the hopes of a big payoff doesn't work? Hoocoodanode?
The crypto meltdown has claimed its first big casualty in the mainstream financial system: Silvergate Capital Corp.
The California lender, one of the crypto market’s top banks, said it would wind down and return all deposits following a run that forced it to sell off assets at a steep loss to cover billions of dollars of withdrawals. Silvergate “is also considering how best to resolve claims and preserve the residual value of its assets,” the bank said in a news release Wednesday.
Silvergate catered to companies in the crypto business. It helped institutional investors move dollars in and out of crypto-trading platforms through its Silvergate Exchange Network, which it stopped operating last week.The bank’s decline tracked the unraveling of the broader crypto industry, which took a turn for the worse following the collapse of FTX last year. FTX and other companies controlled by the crypto exchange’s founder, Sam Bankman-Fried, accounted for about $1 billion of the bank’s deposits. Their collapse rattled the crypto market and sent Silvergate’s stock down sharply.
The bank’s implosion makes it one of the few noncrypto companies to go out of business as a result of the market rout. A handful of banks took a chance on crypto customers that other lenders wouldn’t touch. But Silvergate went all-in, revamping its business model to revolve around serving crypto-related businesses.
How's that whole, "Who needs the full faith and credit of the govenment," thing going, sport?
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