Federal Reserve Board orders Silvergate to submit shutdown plans

Now Silvergate has only 9 days to submit its future self-liquidation plans but under rules & regulations.

Silvergate Bank is a crypto-friendly Bank but now this bank is no longer available to provide services for its customers because of its bad financial position. In early of this year, Silvergate capital corporation, the parent company behind this bank, declared that its Bank’s financial position was disturbed because of the business downfall of its customers.

On 1 June 2023, The Federal Reserve Board issued a consent order to the Silvergate Bank and ordered it to submit its future wind-down plan within the next 10 days and also follow the same plan within the next 10 days of plan submission.

So now, Silvergate has only 9 days to submit its shutdown plans. The issued order by the Fed body clearly ordered the Silvergate Bank to keep the wind-down plan properly with full protection for depositors and the Deposit Insurance Fund. In short, Silvergate was forced by the Fed body to maintain staff, manage financial instruments, and maintain records to the benefit of depositors.

Earlier this, Silvergate Bank itself announced the launch of a self-liquidation plan. Reports confirmed that this bank started to suffer huge problems after the downfall of the FTX exchange in late 2022. The majority of the customers stopped depositing funds with Silvergate Bank. 

After the downfall of this bank, some other banks also reported bad financial situations. After the downfall of some of the US banks, the majority of the crypto firms struggling to get new banking partner.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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