BlocksInform
The cryptography market is still collapsing because of the recent Silvergate crisis. Most recently, the crypto-focused bank, Silvergate, had delayed filing its annual 10-K report with the Securities and Exchange Commission (SEC), which has aggravated its downfall, which was previously precipitated by the collapse of FTX last year.
Based on his recent deposit, "a number of circumstances" resulted in the sale of "additional investment securities in excess of what was previously expected." in the current Advisory, the bank has suggested that its financial health is not the same as the previous disclosure.
The bank had sustained significant losses in its fourth financial quarter of the previous year compared to what was reported this January. As a result, Silvergate was forced to reassess "the impact that these later developments have on its ability to continue as a concern."
With the collapse of Silvergate in the past week, most major altcoins have suffered on their daily graphics now. The share price of Silvergate fell by half, falling by almost 58 per cent. The recent crisis has resulted in many large crypto companies severing their ties with Silvergate Capital because the bank's financial crisis is a threat to the industry.
Cryptographic companies are shutting down their partnerships. With Silvergate
The list of crypto companies who have decided to reduce their links with Silvergate appears to be on the rise. Recently, COINBASE tweeted and announced it would not make payments easier by using silvergate.
This decision came after recent events that rocked the entire market, as mentioned by the crypto stock market. Shortly thereafter, crypto.com, a foreign exchange office based in Singapore, also decided it would not accept the funds transferred to or from silvergate.
Silver GATE platform deposits and withdrawals have been temporarily suspended. Gemini, another crypto exchange, has also ceased to accept withdrawals and deposits of silvergate customers. Wires have also been interrupted by Gemini.
Digital Asset Services Corporation Digital Galaxy released a statement on Twitter that echoed the same sentiments. Paxos, the issuer of stablecoin, has also ceased transfers to the silvergate account; however, the company will continue to process all outbound payments in accordance with their recent statement.
Circle, the company that emits the usdc stability, has also taken similar measures. He said that it is currently "in the process of unrolling some services with [Silvergate] and customer notification.“
Additionally, Bitstamp issued a statement, which read:
Bitstamp cannot be held responsible for the funds deposited in Silvergate's bank account. If you choose to place money in this account, you do so at your own risk.
After their inventories fell by 58%, silvergate was forced to sell its shares at a sharp loss just after a customer rush ran through the bank to withdraw billions in deposits.
The wave of exits from Silvergate was followed by reports from the bank under investigation by the US Department of Justice.
This investigation was carried out in relation to the alleged involvement in the FTX collapse. The former CEO of FTX, Sam Bankman-Fried, who was accused of bank fraud and money laundering, had a Silvergate account.
