Crypto News: The U.S Federal Reserve on Thursday ordered the crypto friendly collapsed bank, Silvergate to carry on with its winding down operations. It gave the bank a 10 day deadline to submit detailed information regarding the process. However, Silvergate now has to choose a way to liquidate itself which preserves its fund and protects depositors.
Also Read: Fentanyl Shutdown Crypto-Funded Fentanyl Trade: US Senator Elizabeth Warren
Silvergate Asked To Protect Depositors
As per the order, Silvergate is barred from making capital distributions, clearing cash assets and engaging in certain other activities without seeking regulatory approval. It added that the decision is jointly made with the Department of Financial Protection and Innovation of the State of California including Silvergate’s state supervisor
The crypto friendly bank in March declared that it would liquidate itself after witnessing a massive selloff. However, this event triggered the global banking crisis which came in just after a few months of horrible crypto market collapse. However, the digital asset market picked up pace during increased volatility in banking stocks.