Crypto Hammered as Silvergate Bank Issues Worry Traders
Worries around Silvergate Bank have set off a mini plunge today.
Crypto has seen a worrying Asian session so far, with most coins seeing some heavy selling as traders look to take cover as the Sivergate Bank issue continues. The Banks share price lost 50% yesterday, and reports indicate that most major players will suspend automated clearing with other business operations with the bank. Right now, Kaken seems to be the only major exchange that looks to be continuing operations with the bank.
Silvergate has seen most of its crypto industry clients leave a day after it announced it would have to review its books with auditors and warned of headwinds. They announced Wednesday they would be delaying their annual 10-K to answer questions from independent auditors and its accounting firm, as well as “regulatory and other inquiries and investigations that are pending.” The bank warned in a forward-looking statement that it faced possible inquiries from bank regulators and the U.S. Department of Justice and its ability to “continue as a going concern”, which may be affected over the next year.
This is driving a considerable amount of fear today, so we will continue monitoring as the updates come out. Let’s hope it won’t become another contagion, as seen in 2022.
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