Officials from the government agency reportedly entered Silvergate’s headquarters last week, with discussions revolving around how to salvage the crypto bank.
Regulators are reportedly holding urgent talks with Silvergate to find a way to save the crypto-friendly bank from a possible shutdown.
Citing “people familiar with the matter,” Bloomberg reported on March 7 that Federal Deposit Insurance Corporation officials and employees are discussing ways to bail out the company. The FDIC is an independent United States government agency responsible for overseeing financial institutions for safety, soundness, and consumer protection, its website said.
FDIC investigators arrived at the company’s headquarters last week and examined the company’s documents and records, one of Bloomberg’s sources said. However, no decision has been made on how to resolve its financial problems, nor does the FDIC’s involvement suggest that a solution cannot be found without regulatory input, a source said.
Silvergate’s stock fell last week after the company announced a delay in filing a 10-K report – a document that will provide a detailed description of the company’s business and financial condition. At the time, he said he was “assessing the impact” of market changes on several high-profile banks in 2022 and “its ability to remain in business” over the next 12 months or so.
Uncertainty about Silvergate’s financial condition has raised fears of an impending bankruptcy filing, which could be costly for other companies. Silvergate stock fell more than 50% on the New York Stock Exchange on March 2 to $5.72 as crypto prices across the board were hammered.
Within 24 hours of announcing its 10,000 delays, Coinbase, Circle, Bitstamp, Galaxy Digital, and Paxos announced a reduction in their relationship with Silvergate. MicroStrategy, Binance, and Tether denied any exposure to the bank.
At the time of writing, Silvergate stock was trading at $5.21, down 70% from a month ago, according to Google Finance. Cointelegraph contacted Silvergate for comment but did not immediately receive a response.
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