Silvergate Capital, a cryptocurrency-focused bank, announced on Wednesday it had fully reimbursed all remaining deposit liabilities, Reuters reported. The recent move follows the bank’s decision to cease operations earlier this year.

According to the report, Silvergate announced in March that it intended to voluntarily liquidate after suffering losses as a result of the sudden collapse of crypto exchange FTX. Presently, the bank possesses less than $10,000 in holdings.

In a statement, the company reiterated its commitment to the planned liquidation. “Silvergate continues to focus on implementing the Bank Liquidation,” it said.

The bank, once an industry favorite, was badly hit by the FTX collapse that worsened already bearish conditions in the crypto market last year. As noted in the report, investors scared off by the FTX catastrophe withdrew more than $8 billion in deposits from Silvergate. As a result, the bank declared a $1 billion quarterly loss before the decision to wind down.

According to the report, the crypto market in 2022 lost over $1 trillion in value. Alongside multiple institutional collapses, rising interest rates and worries also added to the bearish turn.

Meanwhile, conditions in the crypto market appear to have stabilized, fueled mainly by speculation around the U.S. Securities and Exchange Commission potentially approving a spot Bitcoin ETF for the first time. While major tokens started the week slowly, they have regained profits lost during the slowdown.

Turning to cryptocurrency data tracker CoinMarketCap, Bitcoin has added over 2% gain in the past 24 hours. At press time, the token was exchanging hands at $37,286 apiece. Likewise, Ether’s price increased by over 3% within the same period.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision