Hi HODLers and Hiveans,
Some of you were maybe thinking about SilverGate will be liquidated but I am pretty sure most of you did not even speculate on this just a few weeks ago.
Yes, the bank was under pressure after they announcedit would have to delay filing its annual 10-K report due to questions over its financial statements from its auditors.
"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. The Bank’s wind down and liquidation plan includes full repayment of all deposits. The Company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets"
This is the polite way to say that there are going to do their best to make their clients whole which they will probably fail to.
What is interesting is that Silvergate took out:
approximately $4.3 billion in loans from the Federal Home Loan Bank of San Francisco, a federal banking entity that provides this type of loan for banks
Industry veterans were surprised to see a Federal Home Loan Bank lend money to Silvergate.
Hopefully, these type of news stop coming and hitting us. It does seem that the FED's operation to cut Crypto from the banking system is working... For now...
Stay safe out there,