Banking Crisis: Crypto Bank Silvergate To Begin Self-liquidation After Fed Approval
Crypto News: The U.S Federal Reserve on Thursday ordered the crypto friendly collapsed bank, Silvergate to carry on with its winding down operations. It gave the bank a 10 day deadline to submit detailed information regarding the process. However, Silvergate now has to choose a way to liquidate itself which preserves its fund and protects depositors.
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Silvergate Asked To Protect Depositors
As per the order, Silvergate is barred from making capital distributions, clearing cash assets and engaging in certain other activities without seeking regulatory approval. It added that the decision is jointly made with the Department of Financial Protection and Innovation of the State of California including Silvergate’s state supervisor
The crypto friendly bank in March declared that it would liquidate itself after witnessing a massive selloff. However, this event triggered the global banking crisis which came in just after a few months of horrible crypto market collapse. However, the digital asset market picked up pace during increased volatility in banking stocks. Read More Crypto News Here…
Bitcoin, the biggest cryptocurrency price dipped to trade around the $20K level at the beginning of March. However, BTC price registered a massive rally to end the month trading at around $28k level.
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As per reports, Silvergate witnessed heavy outflows during the bear market due to its dependency on the crypto market. The bank reportedly registered $8.1 billion in the last quarter of 2022. As the volatility increased, its major clients like Coinbase, Circle and Paxos.
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