Failing bank Silvergate and FDIC are discussing recovery plans

Failing crypto bank Silvergate is exploring ways to make a recovery with U.S. regulators, according to a report from Bloomberg on March 7.

That report says that Federal Deposit Insurance Corp (FDIC) officials have visited Silvergate’s headquarters in La Jolla, California. Silvergate reportedly plans to seek investments from elsewhere in the cryptocurrency industry to regain its liquidity.

Neither Silvergate nor the FDIC has publicly commented on the matter. Bloomberg instead cited sources familiar with the matter.

On March 1, Silvergate submitted a filing to the SEC indicating that it would delay its 10-K filing and revealed that it faces regulators’ inquiries.

The value of Silvergate shares (SI) rapidly declined in the days that followed, and several crypto companies, including Coinbase and Circle withdrew from the network.

The firm announced that it would shut down its Silvergate Exchange Network (SEN) on March 3 while keeping other services open.

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