Silvergate Capital (SI), the San Diego crypto bank under investigation by regulators, said it shut down, sending ripples through an industry that’s been on edge since the collapse of FTX in November. Its shares lost almost half their value.

“In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of Bank operations and a voluntary liquidationꦯ of the Bank is the bes🎃t path forward,” the company said in the statement. 

Shares of the California-based crypto bank plunged over 40% in extended trading on the heels of the announcement.

Silvergate said part of the liquida♌tion plan includes full repayment of all deposits, later adding that all other deposit-related services will remain operational as the company goes through the process of closing operations. Customers will be notified of any further changes.

Just last week, shares of Silvergate sank as much as 45% after the company said it would 澳洲幸运5开奖号码历史查询:delay filing its annual report due to pending investigations by the U.S. Department of Justice and otheꦯr regulators. This caused major crypto-industry plꦦayers Coinbase and Paxos to cut ties with Silvergate.

Ties to FTX Collapse

The bank’s ties to collapsed crypto exchange FTX and Alameda Research may be one of the motivations behind the investigations. Last week, Silvergate Bank said on its website that it would discontinue the Silvergate ไExchange Netw🧔ork (SEN) as well. 

Silvergate’s shares have lost over 80% of their value since the FTX collapse in November. In January, the Wall Street Journal reported that Silvergate’s customers 澳洲幸运5开奖号码历史查询:withdrew $8.1 bill🐼ion in digital deposits in the fourth quarter of 2022 following FTX’s collapse, causing the bank to sell assets at a loss in an effort to recover.