Silvergate Bank, the banking institution linked to troubles with now-defunct cryptocurrency platform FTX, announced on Wednesday it would “wind down operations.”
The Bank’s parent company, Silvergate Capital Corporation, said in a press release it would close operations due to “recent industry and regulatory developments.”
It also plans a “full repayment of all deposits,” according to its liquidation plan.
The news comes after numerous cryptocurrency platforms, including Paxos, Coinbase, Gemini, Galaxy Digital, and BitStamp said they would sever ties to the bank.
Their announcement comes after the firm faced lawsuits for facilitating FTX and Alameda Research payments despite the latter two filing for bankruptcy shortly after.
Silvergate Capital said it would close its exchange network on 3 March due to a “risk-based decision.”
The embattled bank also sparked the ire of banking and cryptocurrency firms after it stated it would delay filing its annual 10-K report, raising suspicion about its financial situation.
