%Cryptocurrency bank %SilvergateCapital ($SI) is shutting down its operations and plans to liquidate its assets after struggling in the wake of the FTX exchange collapse last fall.
Silvergate had served as one of the two main banks for cryptocurrency companies, along with New York-based Signature Bank. Silvergate’s stock plunged 36% on news of the liquidation.
Silvergate said it now has just over $11 billion in assets, compared with more than $110 billion at rival %SignatureBank.
Bankrupt cryptocurrency exchange %FTX was a major customer of Silvergate, and the bank struggled after the $8 billion implosion of FTX last November.
In a written statement, Silvergate said: “In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of bank operations and a voluntary liquidation of the bank is the best path forward.”
Silvergate said that all customer deposits will be fully repaid, according to its liquidation plan.
The liquidation comes less than a week after Silvergate discontinued its payments platform known as the Silvergate Exchange Network, which was one of its core offerings.
Last week, Silvergate said that it would delay the filing of its annual 10-K form, or annual report, for 2022 while it determined the future viability of its business.
In addition to cutting 40% of its workforce this past January, Silvergate reported a nearly $1 billion net loss in the fourth quarter of 2022 following a mass exodus of customers.
Customer deposits at Silvergate plunged 68% to $3.8 billion in Q4. To cover the withdrawals, Silvergate had to sell $5.2 billion of debt securities.
Silvergate’s stock has declined 72% this year to trade at $4.91 per share. But that was before news that the bank is ceasing operations.