According to Bloomberg’s report, Federal Deposit Insurance Corporation (FDIC) officials, troubled crypto-focused bank Silvergate Capital’s It talks with its executives about how they can keep the company afloat.
Silvergate Talks to FDIC on How to Save the Crypto-Focused Bank
FDIC investigators met with Silvergate management at its California headquarters last week.
According to Bloomberg’s sources, one of the options includes involving crypto industry investors to help increase Silvergate’s liquidity.
Silvergate shares rose 2.5% to $5.34 in after-hours trading on Tuesday.
Silvergate announced last week that it would delay submitting its annual report as it needed to respond to requests from its auditors and accounting firm.
The majority of crypto customers later announced that they were leaving or were leaving the company, causing Silvergate’s share price to drop more than 50% to an all-time low.
Silvergate also announced that it has discontinued the Silvergate Exchange Network (SEN), which is used by institutions to move money to crypto exchanges.
With the collapse of FTX, it had a domino effect in the crypto money market.
FTX has at least $1 billion in deposits with Silvergate, but the bank says this represents less than 10% of its total deposits from all digital asset clients.
The company CEO also tried to reassure investors that the market volatility caused by the collapse of FTX would not affect the crypto banker’s business.
*Not investment advice.
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