Overview of the Situation

• Silvergate Capital Corp has announced that it will be winding down its operations and liquidating all assets.
• The bank was struggling to stay afloat ever since the FTX debacle and the increased scrutiny from regulators.
• Silvergate Exchange Network, which acted as a conduit between crypto and traditional banking services, was discontinued in early March.

Silvergate Capital’s Decision to Shut Down

Silvergate Capital Corp has officially announced that it will be shuttering its operations and liquidating all assets in order to return all deposits. The company is following applicable regulatory processes to properly wind down their business. They are also considering how best to resolve claims and preserve asset valuation as much as possible.

FDIC Efforts Fail To Salvage Bank

In the past few weeks, officials from the Federal Deposit Insurance Corporation (FDIC) were trying to come up with ways to help save the company by attempting to work out a way for it survive. Unfortunately, all efforts have failed, leading Silvergate Capital Corp to make the decision of shutting down permanently.

Flagship Payment Network Shutdown

The process of winding down is being overseen by various firms such as Centerview Partners LLC and Cravath, Swaine & Moore LLP who are providing financial advisement and legal assistance respectively. Strategic Risk Associates are also involved in aiding with transition project management assistance during this difficult time for Silvergate Capital Corp. As part of this process, their flagship payments network – Silvergate Exchange Network – was already discontinued in early March 2021.


Silvergate Capital Corp had no choice but to make the tough decision of shutting down operations due to increasing regulatory pressure stemming from investigations into associations with FTX and Alameda Research alongside financial losses incurred due unsuccessful attempts at salvaging their business model despite FDIC’s involvement. All deposits will still be returned although claims may not necessarily be resolved or asset values preserved depending on how things proceed moving forward with their wind-down plan which includes discontinuing their flagship payment network – Silvergate Exchange Network – amongst other measures taken by their advisors overseeing the process of liquidation.

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