Crypto-friendly bank Silvergate has accepted the Fed’s deadline to submit plans.
The Federal Reserve Board has instructed Silvergate Bank, the crypto-friendly bank, to submit a plan within the next 10 days to liquidate its operations.
Silvergate Will Fit On Fed’s Schedule
The Federal Reserve Board has instructed the crypto-friendly Silvergate Bank to submit a plan within the next 10 days to liquidate its operations. This order was given after a review that identified shortcomings in the bank’s safety, soundness and regulatory compliance.
Silvergate Bank complied with the Federal Reserve’s order to submit its self-liquidating plan to California financial regulators. The bank said it had to protect cash and other resources to protect the rights of depositors.
The Federal Reserve’s order highlights the failures Silvergate Bank attributes to its deals with FTX, a defunct crypto exchange. The bank took out an emergency loan from the San Francisco Federal Home Loan Bank to recover from the collapse of FTX and the loss associated with the digital asset called Diem.
Silvergate Bank’s leadership stated that it voluntarily accepted the sanctions actions and that any bonuses, promotions or compensation to senior executives as part of the decision must be approved by the regulators.
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