Silvergate Faces Enormous Crypto Withdrawals - Texas Today
Customers of the US bank Silvergate, which provides cryptocurrency services, have withdrawn more than $8 billion (£6.7 billion) from crypto-linked deposits. Approximately two-thirds of the bank’s customers withdrew their deposits in the last three months of 2022. To cover the costs and maintain liquidity, the bank sold assets worth $5.2 billion. It occurred following a warning from three US authorities to banks that issuing cryptocurrency was “very likely to be inconsistent with safe banking procedures.” Silvergate is a bank traded on the New York Stock Exchange; hence it is governed by the financial industry. It is one of only a few businesses in this field that provides cryptocurrency-related services. The withdrawals occurred following the closure of the FTX crypto exchange, which was previously worth $32 billion and filed for bankruptcy in November. Former FTX CEO Sam Bankman-Fried has pleaded not guilty to allegations of defrauding consumers. Prosecutors claim that up to one milli...