The fall of Silvergate Bank shakes up the crypto market

The FTX saga continues to take its toll, the latest being Silvergate Bank. This bank, as well as its parent company, Silvergate Capital Corporation, are currently facing legal pressure in connection with the FTX and Sam Bankman Fried affair. According to various sources, the bank has delayed the publication of a financial report eagerly awaited by observers, fueling the fears of investors who hastily sold their assets, causing a 5% drop in the price of Bitcoin. Several sponsored companies have already severed their ties with this bank.

Silvergate Bank Drives New Crypto Market Slump

The California bank Silvergate Bank, primarily involved in cryptocurrency transactions, was to submit its annual report on Form 10-K to the SEC by the 16th of this month. The Form 10-K is a crucial annual report that determines the financial state of a business.

However, on Thursday March 2, the bank issued a note announcing that his report would not be ready by the agreed date due to various challenges.

Several circumstances have occurred that will adversely impact the timing and unaudited results previously reported in the earnings release, including the sale of additional investment securities beyond what was previously expected.

Silvergate Bank

This memo was poorly received in the business world, resulting in the fall of the company’s shares by 58%. Mass withdrawal of crypto bank customers Silvergate influenced the price of Bitcoin and Ethereum in the market. Bitcoin, which was listed at $23,500 on Thursday, fell to $22,020 on Friday morning.

Silvergate corporate partners renege on partnership

The beginning of trouble for Silvergate Bank was marked by the announcement of its delay in filing its annual report. The crypto bank’s partners immediately took a cautious approach in breaking contact with it, due to the uncertainty surrounding its business. A few minutes after the announcement, Coinbase said that they would no longer accept payments from or to silver gate.

Meanwhile, USDC issuer Circle reported on Twitter that it excluded certain transactions involving the bank Silvergate Capital Corp.

Reports have also emerged pointing to an investigation last month into the bank’s dealings with the exchange. FTX. It turned out that Silvergate had worked with Sam’s empire and Alameda Research, which are also bankrupt. The implications of this investigation are significant for crypto bank Silvergate and have already raised investor concerns about the future of the bank.