The Descent of Crypto Lender Silvergate into Voluntary Liquidation

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(Reuters) – Crypto-focused bank Silvergate Capital Corp has become the latest victim of an industry meltdown after announcing plans to halt operations and voluntarily liquidate.

Founded in 1988, Silvergate ventured into crypto in 2013. The bank announced in December that it would close its mortgage warehouse business amid rising interest rates and falling loan volumes mortgages.

Date Development

January 31, 2022 Diem Association supported by Meta Platforms Inc

sells Blockchain Payments Network and others

intellectual property assets at Silvergate

October 18, 2022 The company posted third-quarter adjusted EPS of $1.28, 10

cents below Refinitiv IBES estimate in volumes

on its Silvergate Exchange Network (SEN)

decreases

November 11, 2022 The company said it has no outstanding loans or

investments in FTX and as of September 30, 2022 the

the crypto exchange was less than 10% of

total digital asset customer deposits

after FTX said it was going to file for bankruptcy

procedure in the United States

Nov 28, 2022 The company said it has minimal exposure to

BlockFi with deposits limited to less than $20

million of its total deposits after the

cryptocurrency lender filed for chapter 11

bankruptcy protection

January 5, 2023 Silvergate cuts 200 jobs and declares the total

customer deposits of digital assets have declined

to $3.8 billion at the end of December 31, 2022,

vs. $11.9 billion as of September 30, 2022

January 6, 2023 Decommissioning of Moody’s Investor Service

Silvergate long-term deposit rating at Ba1

by Baa2

January 17, 2023 The company announces a net loss of $1 billion in

the fourth trimester

January 27, 2023 Silvergate suspends dividend payments on certain of

preferred shares to preserve capital

January 31, 2023 US senators ask Silvergate for details of his

risk management practices and its relationship with

bankrupt exchange FTX

February 2, 2023 US depository bank State Street Corp announces a

9.32% passive stake in Silvergate Capital at

December 31st

February 2, 2023 Federal prosecutors in Washington are also

investigate Silvergate and its relationship with

Bankrupt crypto exchange FTX and Alameda

Research, source says

February 14, 2023 Citadel Securities, the market maker owned by

Ken Griffin, reports 5.5% stake in Silvergate

worth about $25 million, according to a

regulatory filing.

March 1, 2023 Silvergate warned it was delaying its annual report

report and said he was assessing his ability

operate as a going concern

March 2, 2023 Cryptocurrency heavyweights including Coinbase

Global Inc and Galaxy Digital abandon Silvergate

as a banking partner

March 3, 2023 The company said it had made a “risk-based assessment

decision” to interrupt the payment network

Silvergate exchange network

March 6, 2023 A host of crypto firms release statements on

material exposure and services with the bank

March 8, 2023 Silvergate plans to cease operations and

voluntarily liquidate

(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Sriraj Kalluvila)

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