Silvergate Bank to Close in March 2023 Due to Regulatory Changes

On September 23, the executives responsible for shutting down Silvergate Bank's parent company said the bank was able to meet regulatory capital requirements and continue to serve customers despite a shrinking cryptocurrency industry and rising interest rates.

However, regulatory changes from the Federal Reserve, FDIC and OCC in 2023 prevented Silvergate Bank from continuing its digital asset-focused business model.

Elaine Hetrick, chief administrative officer of Silvergate Capital Corporation, provided a timeline in the bankruptcy filing showing that Silvergate Bank closed on March 8, 2023, the company said.

The filing also shows that Silvergate's consolidated operations reported a net loss of $948.7 million for the year ended Dec. 31, 2022, compared to a net income of $75.5 million for the year ended Dec. 31, 2021, primarily due to losses on the sale of long-term securities as a result of rising interest rates.