Crypto-friendly Silvergate Bank will "voluntarily liquidate" its assets and wind down operations, its holding company, Silvergate Capital Corp. (SI), said Wednesday.
The bank was under fire after announcing a week ago it would have to delay filing its annual 10-K report due to questions from its independent auditors and accounting firm over its figures. In Wednesday's announcement, Silvergate Corp. announced it had tapped Centerview Partners as a financial adviser, the law firm Cravath, Swaine and Moore LLP and Strategic Risk Associates for "transition management assistance." Under the winding down all deposits will be repaid in full, the company 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. 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," Silvergate Corp. said in a press release.