Silvergate Capital Corporation (NYSE: SI), the parent company of crypto-focus Silvergate Bank, has revealed that it plans to wind down its operations and initiate a voluntary liquidation of the Bank.

According to the press release, the liquidation will be carried out in an orderly manner, adhering to all relevant regulatory procedures. This announcement suggests that Silvergate has decided to discontinue its banking operations and focus on other areas of business.

"In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of Bank operations and a voluntary liquidation of the Bank is the best path forward. " Silvergate Capital wrote in the announcement.

As part of the wind-down and liquidation plan, Silvergate Bank intends to repay all of its depositors fully. The company is also exploring ways to address any outstanding claims and protect the remaining value of its assets. This includes its unique proprietary technology and tax assets, which the company hopes to preserve during liquidation. Silvergate's priority is ensuring all stakeholders are treated fairly during this transition period.

On March 3, 2023, Silvergate Bank has announced that it will be discontinuing its Silvergate Exchange Network (SEN), a decision that was posted on the bank's public website. However, all other deposit-related services will continue to operate during the bank's wind-down process. The bank has assured its customers that they will be notified in the event of any further changes.