Silvergate Capital Corporation, the parent company of the crypto lending bank, announced on Wednesday it will discontinue operations and liquidate the Bank given the recent "industry" and "regulatory" developments.
"The Company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets," the corporation explained in the statement. All deposits will be fully repaid as part of the liquidation strategy, the company said.
The Silvergate Bank previously made the decision to halt its cryptocurrency instant payment network, also known as the Silvergate Exchange Network (SEN), which allowed consumers to initiate transactions whenever they wanted. The firm's stock sank 30.75% in the after-hours trading following the news.
