Silvergate closes Exchange Network, releases $9.9M to BlockFi
Crypto bank Silvergate announced on March 3 that it is discontinuing its digital assets' payment network, claiming the termination is a "risk-based decision".
The move comes after the bank's stock fell over 59% in the past five days due to fears of a potential bankruptcy. A disclaimer on Silvergate's website stated:A second decision on the same day from United States Judge Michael B.
Kaplan said Silvergate had to return $9,850,000 deposited by BlockFi. As per documents posted on the website of BlockFi's restructuring advisor, the court ordered the bank to immediately release the funds following an agreement between the two companies in November 2022.BlockFi is one of the crypto firms affected by the FTX collapse last year, as is Silvergate.
The crypto bank had liquidity issues due to the crypto bear market before being hit by significant outflows in the fourth quarter of 2022, leading to a $1 billion net loss.
Read more on cointelegraph.com
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