According to the corporation, the Silvergate Exchange Network (SEN) would be shut down because of a “risk-based decision.”
Due to what the company describes as “a risk-based decision,” Silvergate was forced to shut down its Silvergate Exchange Network on Friday.
The company’s credit rating was reduced by Moody’s for the second time in less than two weeks, resulting in the network’s suspension. When the firm delayed the submission of its annual report and after the company told the Securities and Exchange Commission that it was “less than well-capitalized,” Moody’s said that it downgraded Silvergate because of low capitalization and “governance problems.”
According to Silvergate’s information, other deposit-related services are operating as usual even though SEN has been terminated.
Circle, Blockchain.com, Wintermute, GSR, Coinbase, and Paxos, to name a few, are just a few of the big blockchain organizations that have terminated connections with Silvergate.
As specified and mandated in BlockFi’s bankruptcy, the bank announced it would release $9.9 million to the financially troubled cryptocurrency lender BlockFi.
According to its statement with the SEC, Silvergate is now dealing with a variety of problems, some of which include litigation, as well as regulatory and legislative investigation.
Also Read: SEC Official Claims That Binance US Operates As A “Unregistered Securities Exchange”
Wallets