(Reuters) – Crypto-focused bank Silvergate Capital Corp became the latest casualty of a meltdown in the industry after announcing plans to wind down operations and voluntarily liquidate.
Founded in 1988, Silvergate ventured into crypto in 2013. The bank in December said it would shut its mortgage warehouse business amid rising interest rates and declining mortgage volumes.
Date Development
Jan 31, 2022 Meta Platforms Inc-backed Diem Association
sells Blockchain Payments Network and other
intellectual property assets to Silvergate
Oct 18, 2022 The company posted Q3 adj EPS of $1.28, 10
cents below Refinitiv IBES estimate as volumes
on its Silvergate Exchange Network (SEN)
decreased
Nov 11, 2022 The company said it has no outstanding loans or
investments in FTX and as of Sept. 30, 2022 the
crypto exchange represented less than 10% of
total deposits from digital asset customers
after FTX said it would initiate bankruptcy
proceedings in the United States
Nov 28, 2022 The company said it has a 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
Jan 5, 2023 Silvergate cuts 200 jobs and said total
deposits from digital asset customers declined
to $3.8 billion at the end of Dec. 31, 2022,
compared with $11.9 billion at Sept. 30, 2022
Jan 6, 2023 Moody’s Investor Service downgraded
Silvergate’s long-term deposit rating to Ba1
from Baa2
Jan 17, 2023 The company reports a net loss of $1 billion in
the fourth quarter
Jan 27, 2023 Silvergate suspends dividend payouts on some of
its preferred stock to preserve capital
Jan 31, 2023 U.S. senators ask Silvergate for details of its
risk management practices and its dealings with
bankrupt exchange FTX
Feb 2, 2023 U.S. custodian bank State Street Corp reports a
9.32% passive stake in Silvergate Capital as of
Dec. 31
Feb 2, 2023 Federal prosecutors in Washington are also
probing Silvergate and its dealings with
bankrupt crypto exchange FTX and Alameda
Research, according to a source
Feb 14, 2023 Citadel Securities, the market maker owned by
Ken Griffin, reports a 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 and said it was evaluating its ability
to operate as a going concern
March 2, 2023 Cryptocurrency heavyweights including Coinbase
Global Inc and Galaxy Digital drop Silvergate
as their banking partner
March 3, 2023 The company said it made a “risk-based
decision” to discontinue payments network
Silvergate Exchange Network
March 6, 2023 A slew of crypto firms issue statements about
material exposure and services with the bank
March 8, 2023 Silvergate plans to wind down operations and
voluntarily liquidate
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Sriraj Kalluvila)
