• Silvergate Bank has discontinued its cryptocurrency payments network, the Silvergate Exchange Network (SEN).
• This decision followed the withdrawal of banking relationships by several major crypto firms, including Coinbase, Gemini, Paxos and Circle.
• Silvergate Bank is currently being investigated by the U.S. Department of Justice over accounts tied to FTX co-founder Sam Bankman-Fried (SBF).

Silvergate Bank Terminates Crypto Payments Network

Silvergate Bank has discontinued its cryptocurrency payments network, the Silvergate Exchange Network (SEN). The decision to shut down SEN followed the withdrawal of banking relationships by several major crypto firms, including Coinbase, Gemini, Paxos and Circle.

Investigation into Accounts Tied to SBF

Silvergate Bank is currently being investigated by the U.S. Department of Justice over accounts tied to FTX co-founder Sam Bankman-Fried (SBF). The bank claimed that as of Sept. 20, 2022, FTX represented less than 10% of its $11.9 billion total deposits from all digital asset customers.

Silvergate’s Financial Stability in Question

Concerns mounted over Silvergate’s financial stability and future prospects following the collapse of FTX. On Wednesday, Silvergate informed the SEC that it is unable to file its annual report with the regulator for the fiscal year ended Dec. 31 „within the prescribed time period without unreasonable effort or expense due to reasons described below.“ The crypto-focused bank also revealed that it has sold additional debt securities at a loss this year, leading to questions about its ability to operate as a going concern.

Crypto Firms Suspend Banking Partnership with Silvergate

As concerns grew about Silvergates financial stability and future prospects major Crypto firms suspended their banking partnership with Silvergate . These firms include: Coinbase Global , Galaxy Digital , Paxos , Circle ,Cboe’s digital asset exchange , Bitstamp and Gemini .

Silvergage Shares Plunge To Record Low

Shares of Silvergate (NYSE: SI) hit a new all-time low on Thursday, plummeting more than 25%. Investors are worried about potential regulatory action against the bank as well as other headwinds faced by cryptocurrencies in general.