Crypto-focused Bank Silvergate Capital Fully Repays Deposit Liabilities
Crypto-focused bank Silvergate Capital has announced that it has fully repaid all remaining deposit liabilities. Earlier this year, the bank made the decision to wind down operations after suffering losses due to the collapse of crypto exchange FTX. According to the statement, Silvergate now holds less than $10,000.
Silvergate’s Focus on Bank Liquidation
In a statement on Wednesday, Silvergate reiterated its focus on implementing the bank liquidation process. The California-based bank was once a favored institution in the crypto industry but reported a $1 billion quarterly loss prior to winding down. This came as investors withdrew over $8 billion in deposits following the FTX debacle.
Cryptocurrency Market Loses Trillions in Value
In 2022, the cryptocurrency market experienced a loss of over a trillion dollars in value. This decline was primarily driven by concerns about an impending economic collapse and the increasing interest rates.
Hot Take: Cryptocurrency Market Faces Significant Losses
The cryptocurrency market has suffered significant losses in recent times, with Silvergate Capital being just one example. The collapse of crypto exchange FTX and the subsequent withdrawal of billions of dollars by investors have had a profound impact. Furthermore, the overall market has been affected by concerns about economic instability and rising interest rates. These factors have contributed to a decline of over a trillion dollars in cryptocurrency value. It remains to be seen how the market will recover and adapt to these challenges.
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