Silvergate announces its liquidation, the crypto market takes the hit

Silvergate announces its liquidation, the crypto market takes the hit

Some will consider that the epilogue was inevitable, even if until last night, hope still seemed possible: silver gate has just announced that it is proceeding with the “voluntary liquidation” of its banking activities, thus becoming the latest collateral victim to date of the FTX big bang.


Liquidation of Silvergate’s banking activities

It is via a short communicated that the ax fell in the night. Weakened, and even shaken for months following the bankruptcy of the world number 2 crypto exchange FTX, the Silvergate company has finally resolved to agree to the voluntary liquidation of its banking branch.

Wanting to be reassuring despite everything, the company indicates that this liquidation will take place in an “orderly” manner, so as to fully comply with the standards of the American regulator.

Furthermore, it was emphasized that all of the bank’s customers and creditors would see their reimbursement or the restitution of their assets, guaranteed by the establishment. Finally, Silvergate Bank indicates that it is ending the service of the Silvergate Exchange Network (SEN).

It will be recalled that as painful as it is for the entire crypto industry, the event was however largely anticipated by the ecosystem. Thus, from Tether to Circle (Coinbase), many other players in the sector have distanced themselves from the establishment, either by cutting off existing relations, or by recalling the absence of business links (in particular concerning Microstrategy and Tether USDT).

However, many questions remain about the future of assets in bitcoins and other cryptocurrencies held by the bank. An uncertainty that makes the entire crypto market feverish, in sharp decline in recent days.

The Silvergate bank therefore joins the cemetery cluttered with the more or less direct victims of Sam Bankman-Fried’s mistakes, the person concerned remaining for the time being, however, more concerned with his digital leisure than with the state of disrepair in which he left the crypto industry.

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