Gadgets Africa
  • News
    UK children using TikTok, Snapchat increased in 2022 - Regulator

    UK children using TikTok, Snapchat increased in 2022 – Regulator

    Microsoft launches AI-powered cybersecurity tool

    Microsoft launches AI-powered cybersecurity tool

    Apple introduces Apple Pay Later

    Apple introduces Apple Pay Later

    Automaker Lucid Group lays off 1,300 workers

    Automaker Lucid Group lays off 1,300 workers

    Paystack co-founder Shola Akinlade acquires Danish football club

    Paystack co-founder Shola Akinlade acquires Danish football club

    AI company Cerebras releases ChatGPT-like models

    AI company Cerebras releases ChatGPT-like models

    China urges Apple to strengthen data security, privacy protection

    China urges Apple to strengthen data security, privacy protection

    FTX's Bankman-Fried faces new indictment of bribing Chinese officials

    FTX’s Bankman-Fried faces new indictment of bribing Chinese officials

    Google to launch new features for teachers, students

    Google to launch new features for teachers, students

  • Apps
  • Cryptocurrency
  • featured
  • Telecommunications
  • Gadgets
  • FinTech
  • Tech leaders
Gadgets Africa
No Result
View All Result

Crypto bank Silvergate crashes

by Alex Omenye
March 9, 2023
in News
Reading Time: 2 mins read
Crypto bank Silvergate crashes
Share on FacebookShare on TwitterShare on Telegram

The parent company for cryptocurrency-focused Silvergate Bank, Silvergate Capital Corporation, has declared its intention to wind down operations and voluntarily liquidate the banking division on Wednesday.

Days prior, Silvergate’s shocking announcement that the company was experiencing a financial problem had stunned the industry.

The organization, one of the few banks to function as a middleman in the institutional crypto market, is yet another victim of the “crypto winter” in the wake of FTX’s collapse, which employed the bank to transfer customer funds.

The bank was established in California three decades ago as a little local lender, but in recent years it has grown to become a major player in the cryptocurrency market.

With the ebb and flow of the market, so did its fortune. Deposits at Silvergate increased from over $2 billion in 2020 to over $10 billion in 2021 as token prices soared.

However, its deposits plummeted to $6.3 billion by the end of 2022, a decline of more than 50% from just three months earlier.

Silvergate tried to persuade investors and regulators that its exposure to the digital asset exchange was limited at the time of FTX’s bankruptcy last October.

“As of September 30, 2022, Silvergate’s total deposits from all digital asset customers totaled $11.9 billion, of which FTX represented less than 10%. Silvergate has no outstanding loans to nor investments in FTX, and FTX is not a custodian for Silvergate’s bitcoin-collateralized SEN Leverage loans. To be clear, our relationship with FTX is limited to deposits,” Alan Lane, Silvergate’s CEO, wrote in a statement in November.

According to a February Bloomberg article, US prosecutors in the Justice Department’s fraud division were looking into Silvergate’s interactions with FTX and Alameda Research.

Silvergate’s closure will significantly impact how money enters and leaves the cryptocurrency industry. The bank said on March 3 that it would stop operating the Silvergate Exchange Network, a cryptocurrency payments platform that allowed dollar transfers between investors and cryptocurrency exchanges around-the-clock.

Silvergate promised the consumers in a recent announcement that they would receive their deposits, so it won’t be total losses.

Tags: cryptoCryptocurrency
ADVERTISEMENT

Related Posts

UK children using TikTok, Snapchat increased in 2022 - Regulator
News

UK children using TikTok, Snapchat increased in 2022 – Regulator

by Alex Omenye
March 29, 2023
Microsoft launches AI-powered cybersecurity tool
News

Microsoft launches AI-powered cybersecurity tool

by Alex Omenye
March 28, 2023
Apple introduces Apple Pay Later
News

Apple introduces Apple Pay Later

by Alex Omenye
March 28, 2023
Automaker Lucid Group lays off 1,300 workers
News

Automaker Lucid Group lays off 1,300 workers

by Alex Omenye
March 28, 2023
Next Post
Crypto shares slump after Silvergate crash

Crypto shares slump after Silvergate crash

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended.

Nigeria ahead of Europe, US in payment services innovation -UP MD

Nigeria ahead of Europe, US in payment services innovation -UP MD

May 1, 2022
UK children using TikTok, Snapchat increased in 2022 - Regulator

UK children using TikTok, Snapchat increased in 2022 – Regulator

March 29, 2023

Trending.

Flutterwave gets payments licenses in Egypt

Flutterwave gets payments licenses in Egypt

February 8, 2023
US funds software for Russians to slip past censors

US funds software for Russians to slip past censors

July 3, 2022
Uber to integrate its network with New York yellow cabs

Uber to integrate its network with New York yellow cabs

March 24, 2022
FG shuts illegal online banks, freezes business accounts

FG orders Google, Apple to deactivate ‘illegal’ loan apps

March 14, 2022
Telecom subscribers' growth in Lagos, four others hit 56m

UK, US companies plan 10,000 telecoms sites in Africa

May 18, 2022
Gadgets Africa

© 2023 Gadgets Africa.

Navigate Site

  • News
  • Apps
  • Cryptocurrency
  • featured
  • Telecommunications
  • Gadgets
  • FinTech
  • Tech leaders

Share

No Result
View All Result
  • News
  • Apps
  • Cryptocurrency
  • featured
  • Telecommunications
  • Gadgets
  • FinTech
  • Tech leaders

© 2023 Gadgets Africa.

Go to mobile version