Mar 08, 2023
FDIC Urgently Intervenes to Save Crypto-Friendly Silvergate Bank
The crypto-friendly bank Silvergate is facing a possible shutdown, and US regulators are in urgent talks with the company to find ways to save it. According to people familiar with the matter, Federal Deposit Insurance Corporation (FDIC) officials have been discussing with Silvergate management ways to salvage the firm.
The FDIC is an independent government agency in the US tasked with supervising financial institutions for safety, soundness, and consumer protection. Last week, examiners from the FDIC arrived at Silvergate’s headquarters to review the company’s books and records. However, no decision has been made on how to deal with its financial strife, and FDIC involvement does not necessarily mean a solution cannot be reached without the regulator’s input.
The news of Silvergate’s potential shutdown has caused a stir in the crypto market. Silvergate stock plummeted after the company announced a delay in the filing of its 10-K report, which would provide a comprehensive overview of the company’s business and financial condition. It said it was “evaluating the impact” of market volatility and several high-profile bankruptcies in 2022 on “its ability to continue as a going concern” over the next 12 or so months.
In response to the news, Coinbase, Circle, Bitstamp, Galaxy Digital and Paxos announced a scaling back of their individual partnerships with Silvergate. MicroStrategy, Binance and Tether all denied any meaningful exposure to the bank. Silvergate stock has plummeted over 70% over the past month, according to Google Finance, and is currently priced at $5.21.
The possible Silvergate shutdown has implications for the entire web3 space, as the company provides services to many crypto-related businesses. This includes NFT marketing, NFT promotion, Twitter NFT marketing, NFT marketing agency, web3 agency, and selling NFTs. If Silvergate is unable to stay in business, these services could be disrupted, leading to a decrease in the overall crypto market.
Silvergate is not the only crypto-friendly bank facing financial difficulties. Several other banks have recently announced delays in filing their 10-K reports, raising concerns about their ability to remain in business. As the crypto market continues to evolve, it is important for regulators to ensure that financial institutions remain safe and sound.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
