ChainCatcher news, the crypto custodian BitGo has announced the hiring of former Silvergate Bank President Ben Reynolds as Managing Director and Head of US Dollar Standards. Ben will be responsible for overseeing the development of BitGo's US Dollar stablecoin, USDS, which is set to launch next year.Ben has over 25 years of experience in fintech, software, banking, and asset management. Most recently, Ben served as President of Silvergate Bank, where he oversaw the company's revenue growth and was a member of the executive team that expanded Silvergate into a publicly traded company in 2019.

ChainCatcher news, Castle Island Ventures partner Nic Carter stated that the intervention of U.S. regulators forced Silvergate Bank to voluntarily liquidate, otherwise the bank could have survived. Carter pointed out that the Biden administration had previously required Silvergate to limit cryptocurrency deposits to 15%, or face severe consequences. This move is seen as "Kill Switch 2.0," which aims to undermine banks that support cryptocurrency through covert rules, weakening the industry's development.Carter also noted that Silvergate's decision to voluntarily liquidate instead of entering the FDIC receivership process is "questionable," a situation that has occurred only a few times in the past 30 years.Carter believes that Silvergate's collapse is more due to regulatory pressure than a liquidity crisis.

ChainCatcher news, according to Financefeeds, the parent company of crypto-friendly bank Silvergate, Silvergate Capital, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for Delaware. The bankruptcy filing shows that the company's assets are between $100 million and $500 million, with liabilities between $10 million and $50 million. In March 2023, Silvergate Capital announced it would voluntarily liquidate its subsidiary Silvergate Bank, citing challenges in the banking industry due to rising interest rates and regulatory scrutiny following the bankruptcy of crypto exchange FTX in November 2022. Silvergate Bank was known for its close ties to the crypto industry, and its reputation and confidence among clients plummeted after the FTX collapse. In July of this year, Silvergate Capital reached a settlement with the U.S. SEC, the Federal Reserve, and the California Department of Financial Protection and Innovation (DFPI), agreeing to pay $63 million. The Federal Reserve stated that it has ended its enforcement action against Silvergate Capital after Silvergate Bank completed its liquidation plan, repaid deposits, and ceased banking operations.Previous news, the U.S. SEC has sued Silvergate Capital in a federal court, accusing it of securities fraud. The SEC stated that Silvergate misled investors about its banking secrecy policies, anti-money laundering compliance program, and poor financial condition following the collapse of FTX in 2022.

ChainCatcher news, according to an official announcement, the Federal Reserve Board announced on Friday the termination of enforcement actions against Silvergate Bank located in California and its holding company Silvergate Capital Corporation.Since May 2023, the Board's enforcement actions ensured that Silvergate Bank was liquidated and ceased operations in a manner that protected depositors. Since then, Silvergate Bank has completed its liquidation and shutdown plan, repaid all customer deposits, and is no longer operating as a bank.

ChainCatcher news, according to Cointelegraph, U.S. District Judge Ruth Bermudez Montenegro in San Diego has denied a motion to dismiss filed by Silvergate. Silvergate had previously sought to dismiss a class action lawsuit from FTX users, which claims that Silvergate was fully aware of FTX's fraudulent activities but benefited from them, unfairly profiting at the expense of FTX users. Silvergate has denied these allegations.

ChainCatcher news, according to Reuters, crypto bank Silvergate Capital has fully repaid all remaining deposits. According to the statement, Silvergate currently holds less than $10,000 and will "continue to focus on bank liquidation." 1Previous news, in March of this year, Silvergate Capital announced it would cease operations and voluntarily liquidate the bank. Silvergate was once one of the most popular banks in the cryptocurrency industry. In the fourth quarter of last year, Silvergate lost $1 billion due to a massive outflow of funds following the collapse of FTX.

ChainCatcher news, according to The Block, three executives from Silvergate Bank will leave before September 30. According to documents submitted to the U.S. Securities and Exchange Commission (SEC), CEO and President Alan Lane and Chief Legal Officer John Bonino left on August 15, while Chief Financial Officer Antonio Martino will step down on September 30. These three executives will receive severance pay but will no longer receive compensation from the company. Additionally, Silvergate stated that, in light of the bank's liquidation plan, the company will not currently appoint a president, CEO, or CFO.Previous news, Silvergate announced in March this year that it would cease operations and voluntarily liquidate the bank.

ChainCatcher message reveals that, according to new details disclosed in the documents, from 2019 to this year, Binance and related entities transferred approximately $70 billion through accounts at Silvergate Bank and Signature Bank. Among them, Silvergate provided over $50 billion in deposits for Binance-related parties, while Signature handled over $19 billion. Some of the funds have flowed to foreign entities associated with Binance. (Bloomberg)

ChainCatcher news, the crypto-friendly bank Silvergate Bank has agreed to the Federal Reserve's order and will submit a self-liquidation plan to California financial regulators within 10 days.ChainCatcher previously reported that in March, Silvergate Bank stated it would orderly wind down operations and voluntarily liquidate in accordance with applicable regulatory procedures, including fully repaying all deposits, and is also considering how best to address claims and protect the remaining value of its assets, including its proprietary technology and tax assets. Additionally, Silvergate Bank has decided to cease the Silvergate Exchange Network (SEN). (source link)

ChainCatcher news, according to MarketWatch, the New York Stock Exchange (NYSE) announced the delisting process for Silvergate stock due to delayed financial reports.ChainCatcher previously reported that Silvergate announced it would lay off approximately 230 employees, with an expected total cost of about $13.6 million, and has completed the sale of all debt securities. (source link)

ChainCatcher news, according to Proactive Investors, Bitcoin mining company Argo Blockchain stated that one of its subsidiaries holds cash deposits at Signature Bank, and these deposits are safe and accessible. Additionally, Argo and its subsidiaries have no exposure to Silicon Valley Bank or Silvergate. (Source link)

ChainCatcher news, according to CoinDesk, after the collapse of Silicon Valley Bank, Signature Bank, and Silvergate, Digital Currency Group (DCG) is trying to find new banking partners for its portfolio companies. DCG stated that Santander Bank (SAN), HSBC (HSBA), Deutsche Bank (DB), BankProv, Bridge Bank, Mercury, Multis, and Series Financial are still willing to engage with crypto companies.It is reported that these banks may restrict certain services for cryptocurrency companies, such as brokerage and money market services, as well as the ability to remit to third parties. Traditional banks may be willing to set up bank accounts for cryptocurrency companies but will impose restrictions based on the level of exposure to cryptocurrencies. (Source link)

ChainCatcher message, cryptocurrency market maker GSR stated to its clients and community that due to its proactive risk management approach, GSR has minimal remaining risk exposure to Signature and has no direct risk exposure to Silicon Valley Bank and Silvergate. (source link)

ChainCatcher message, Animoca Brands has released a shareholder information announcement, explaining to its shareholders that the company does not have banking relationships with Silvergate Bank or Silicon Valley Bank, and that it maintains multiple banking relationships globally, currently closely monitoring its cash balances. (Source link)

ChainCatcher news, data from S3 Partners shows that the stock price of cryptocurrency-friendly bank Silvergate Capital has fallen about 98% from its peak in November 2021, during which short sellers have made approximately $780 million in profits based on market capitalization, with over $190 million just last week. About 85% of Silvergate's outstanding shares are shorted, making it one of the most shorted stocks in the U.S. market.Additionally, investors are using put options to short Silvergate. S3's predictive analytics head Ihor Dusaniwsky stated that traders seeking to increase their short exposure are now severely hindered by a lack of borrowable shares and rising financing costs. (Bloomberg)

ChainCatcher news, Bitcoin mining company Marathon Digital Holdings announced that it has reduced its debt by $50 million by repaying a term loan and terminating credit services through the liquidation of Silvergate Bank. Marathon's Chief Financial Officer Hugh Gallagher stated in a statement on Wednesday: Given the current cash situation, it is in the company's best interest to prepay the term loan and cancel the term loan and (revolving credit facility) arrangements.Previous report, Silvergate Capital announced it would shut down operations and voluntarily liquidate Silvergate Bank. This news from Marathon was released shortly after Silvergate announced the end of its operations. (The Block)

ChainCatcher news, the holding company of the encrypted bank Silvergate Bank, Silvergate Capital Corporation, announced on Wednesday that it will shut down operations, planning to end the bank's business in an orderly manner and voluntarily liquidate according to applicable regulatory procedures. The stock fell sharply by 40% in after-hours trading.Silvergate stated that an orderly wind-down of the bank's operations and voluntary liquidation is "the best path forward." The bank's liquidation and winding-down plan includes the full repayment of all deposits. The company is also considering how best to address claims and preserve the remaining value of its assets, including its proprietary technology and tax assets. In addition, Silvergate Bank has decided to ultimately cease the Silvergate Exchange Network (SEN). Furthermore, market news indicates that the California Department of Financial Protection and Innovation (DFPI) is involved in Silvergate's liquidation. (source link)

ChainCatcher news, according to a court document from Friday, U.S. Bankruptcy Judge Michael B. Kaplan stated that Silvergate Bank must return the $9.85 million it previously deposited to the crypto lending institution BlockFi.It is reported that BlockFi filed for bankruptcy protection in November 2022. Shortly after submitting the application, BlockFi began negotiations with Silvergate to release the $10 million held in Silvergate's reserve account. The two parties reached an agreement this Friday, and Silvergate will return most of the funds within two business days.Previously, Silvergate Capital Corporation stated in a filing with the U.S. Securities and Exchange Commission (SEC) that the company may be "capital deficient" and indicated that it is "reevaluating its business." (source link)

ChainCatcher news, according to a report by Reuters, the crypto-friendly bank Silvergate Bank has suspended its Silvergate Exchange Network (SEN) trading network, while all other deposit-related services remain operational. SEN is a 24/7 instant settlement service that allows digital currency and institutional investor clients to send dollars between their Silvergate accounts and those of other Silvergate customers.It is reported that Silvergate had previously hinted at potential investigations by the Department of Justice, Congress, and banking regulators. Former clients Coinbase, Circle, Paxos, Crypto.com, Bitstamp, Cboe Digital Markets, Galaxy, and Gemini have all stated that they will suspend their business with the bank. (source link)