Silvergate reveals surgical problems, shares over 30 % crash down

Silvergate reveals surgical problems, shares over 30 % crash down

Silvergate Capital Corporation-A financial institution based in California that focuses on cryptocurrencies-said that it cannot present its annual report planned for March 16. It also sketched some of his main problems and indicated that it could have difficulty continuing the normal course of his operations.

In response to this, the company's shares fell by almost 32 %in post-exchangeable trade.

Further problems for Silvergate

The company called It sold to pay back financial obligations, and that further loss could "do less than well capitalized". Silvergate, the reported a loss of $ 1 billion in the 4th quarter of 2022, triggered by Data preserver spaces = "True"> currently evaluates the effects of its recent problems and regulatory challenges and will fail to submit its annual report due in mid-March.

Matthew Dibb-Chief Investment Officer at the cryptocurrency manager Astronaut Astronaut Capital-commented on the problems of Silvergate:

"According to what we have experienced, most crypto companies had to find banking elsewhere, so we believe that the damage in relation to the effects on the broader crypto market has probably already been served."

Wayne Huang-co-founder and CEO of XREX-it is of the opinion that crypto banking has become increasingly susceptible to the digital-asset industry due to its interweaving.

The shares of Silvergate crashed by more than 30 % shortly after the announcement. The hectic year 2022 had catastrophic effects on the stocks that have been used by about 90 % in the year.

This year's editions

Silvergate did not have the best start to the year 2023, released around 40 % of the workforce and task of several projects. It was also Probably by the US senators Elizabeth Warren, Roger Marshall and John Kennedy, insider information about the alleged FTX fraud.

"Both the congress and the public need and deserve the information that is necessary to understand the role of silver gate in the fraudulent collapse of FTX, especially in view of the fact that Silvergate 2022 has turned to the Federal Home Bank as the lender of the last instance", explained the Politician.

LedGerx-cryptocurrency derivation exchange under the roof of the bankrupt gigant FTX-recently span-preserver-spaces = "True"> no longer to use it for the receipt of domestic transfers. Instead, it was recommended to concentrate on the Signature Bank.

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