Silvergate reportedly talks with FDIC on ways to avoid shutdown

United States banking regulators have reportedly been sent to Silvergate’s headquarters in La Jolla, California – looking for ways to save the crypto-friendly bank from a possible shutdown. 

A Mar. 7 Bloomberg report citing “people familiar with the matter” said Federal Deposit Insurance Corporation (FDIC) officials have been discussing ways to salvage the company with management.

The FDIC is an independent government agency in the U.S. tasked with supervising financial institutions for safety, soundness and consumer protection, its website states.

The FDIC examiners reportedly arrived at the firm’s headquarters last week and have been reviewing the firm’s books and records, one of the sources said.

However, a decision has yet to be made on how it would deal with its financial strife, nor does FDIC involvement suggest a solution can’t be reached without the regulator’s input, suggested another source.

Related: Impact of the Silvergate collapse on crypto – Watch The Market Report live

Silvergate stock plummeted last week after the company announced a delay in the filing of its 10-K report – a document that would provide a comprehensive overview of the company’s business and financial condition.

At the time, 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.

Uncertainty over Silvergate’s financial situation has raised fears of an upcoming bankruptcy filing, which could prove costly for the rest of the industry. Silvergate stock plummeted over 50% on the New York Stock Exchange on Mar. 2 to $5.72, while crypto prices took a beating across the board

Within 24 hours after its 10-K delay announcement, Coinbase, Circle, Bitstamp, Galaxy Digital and Paxos noted a scaling back of their individual partnerships with Silvergate. MicroStrategy, Binance and Tether also denied any meaningful exposure to the bank.

As of the time of writing, Silvergate stock is priced at $5.21, down 70% over the past month, according to Google Finance.

All Dutch and English crypto news!

Class action lawyers claim YouTuber ‘BitBoy Crypto’ threatened them

Lawyers representing a class action lawsuit against "BitBoy Crypto" YouTuber Ben Armstrong and other crypto influencers alleged to have promoted crypto exchange FTX have claimed...

US Senator Ted Cruz tries again with new bill to block CBDC

Republican Senator Ted Cruz has introduced a bill to block the United States Federal Reserve from launching a "direct-to-consumer" central bank digital currency (CBDC). In a...

OneCoin head of compliance facing 40 year sentence after US extradition

United States federal prosecutors have charged a former executive of the fraudulent cryptocurrency scheme OneCoin for her role in the operation, who now faces up...

‘Crypto FUD’ — Industry outraged as White House report slams crypto

Crypto executives have expressed irritation over the latest White House economic report - which notably features an entire chapter dedicated to casting doubts on the...

Beste exchanges

Koop je crypto bij Bitvavo