Silvergate Bank, which focuses on cryptocurrencies and is based in La Jolla, has announced that it will wind down its operations and voluntarily liquidate.
According to a statement from Silvergate Capital, `In light of recent industry and regulatory developments, Silvergate believes that an orderly wind-down of bank operations and a voluntary liquidation of the bank is the best path forward.''
As part of the shutdown, the bank has said it will fully repay all deposits. The bank has also discontinued its Silvergate Exchange Network, which previously allowed round-the-clock digital currency transfers.
Earlier this year, the bank reported a net loss of $1 billion in the fourth quarter of 2022 due to what it described as a "transformational shift in the digital asset industry," which led to "several high-profile bankruptcies" among other digital currency exchanges and resulted in layoffs of members of Silvergate's workforce.