the staff of the Ridgewood blog
Ridgewood NJ, Silvergate Bank, a crypto-friendly bank, announced it will “voluntarily liquidate” its assets and wind down operations after announcing it would have to delay filing its annual 10-K report due to issues with its independent auditors. Under the wind down, all deposits will be repaid in full, and the bank is exploring ways to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets. The California Department of Financial Protection and Innovation and the White House are monitoring the situation, with the Senate Banking Committee Chairman urging Congress to take action on crypto issues. Silvergate had taken out approximately $4.3 billion in federal loans and will suspend its Silvergate Exchange Network (SEN). It appears to be the first major bank collapse since October 2020, and possibly the largest bank to fail since 2009.
