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Silvergate Plunges to Record Low as Crypto Payments Network Ends

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Gherardo Fiorenzo
Gherardo Fiorenzo is an Italian author with a unique perspective shaped by his experiences in Italy and the US. His thought-provoking articles, short stories, and reviews explore the intersections of language, identity, and culture.

encryption bank Silvergate has discontinued its program digital assetspremium network because he isrisk-based on decision. “

the announcement Comes after bank stocks decreased over 59% last a week because of concerns of Possible bankruptcy.

Silvergate ends the exchange network

Silverjet announced on that it website on March 4 it has shut down the Silvergate Exchange Network (SEN). All other deposit related services remain Employment.

o allows The bank, institutional investors, and digital Currency customers to transfer US dollars between their accounts 24/7.

Silverjet also provides a stablecoin infrastructure platform, digital asset Custody management and collateralized lending services.

the bank’s sharesSI, included on New York Stock Exchange (NYSE), hit lowest level ever on Thursday, sink over 97% of their peak in November 2021. shares closed up 0.9% at $5.75 in regular trade.

United States Judge Michael B. Kaplan bank To return the $9,850,000 deposited by BlockFi.

BlockFi, just like Silvergate is one of companies affected by the fall of FTX in November 2022. After the fall, Silvergate reported a $1 billion loss last quarter cut 40% of its employees.

Federal prosecutors are investigating the Silvergate case role in FTX breakdown. probe on The bankhosting of Accounts linked to former Sam Bankman-Fried’s CEO, FTX business.

Cryptocurrency firms are abandoning Silvergate amid solvency concerns

On March 1, A.J bank announced She will defer her annual 10-k filing financial The report, which many feared was about to be submitted for bankruptcy.

A day after the announcement, crypto companies Coinbase, Paxos, Circle, Galaxy Digital, and Bitstamp said they would expand. back their partnerships with the bank in some capacity.

Coinbase will facilitate institutional clients cash transactions with Our other banking partners and have taken proactive action to help ensure that customer experience There is no effect from this change,”

Coinbase said

Furthermore, MicroStrategy and Tether have publicly denied having any real dealings with Silvergate Bank.

A 10-K report is a document required by the Securities and Exchange Commission (SEC) which provides a comprehensive overview of a company business And financial condition.

Silvergate requested an additional two weeks for complete the report for 2022 Fiscal year.

the bank also She revealed that she sold extra debt These papers year In confusion. More losses mean bank It can be “less than well capitalized”.

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