Silvergate Bank Halts Withdrawals After $1 Billion Loss
Silvergate Capital has decided to shut down its Silvergate Exchange Network (SEN) due to concerns about its viability.
The platform, which facilitates crypto payments and is known for its efficiency compared to traditional bank wires, has been a popular service offered by the bank.
However, with mounting uncertainty and a reported $1 billion loss at the end of the fourth quarter, Silvergate clients have been withdrawing their assets and directing them elsewhere.
The bank has also been subject to investigations by banking authorities and the U.S. Department of Justice, which has added to the uncertainty around the bank’s future.
The suspension of the SEN comes amid warnings from banking authorities about the risks associated with cryptocurrencies, including volatility and lack of regulation. Investors are advised to thoroughly research any cryptocurrency investments before committing funds.
Before its suspension, the SEN was recognized as an important development in the digital currency industry, providing a trusted and secure platform for institutional investors and businesses to transact in digital currencies.
However, the bank’s recent troubles have led to concerns about its ability to continue as a going concern.