Silvergate Capital to wind down operations, liquidate Silvergate Bank

Silvergate Capital ( NYSE: SI ) plans to wind down operation s and voluntarily liquidate Silvergate Bank, including the full repayment of all deposits, the company said Wednesday. Silvergate stock tumbled 27% in after-hours trading. The company is also considering how to best resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets. The crypto-friendly bank was dealt a severe blow when its digital asset customers withdrew deposits in the wake of FTX's collapse and the subsequent drop in crypto asset prices. The U.S. Department of Justice started investigating the bank's relationship with Sam Bankman-Fried's businesses. California's Department of Financial Protection and Innovation said it's "monitoring the situation closely to facilitate the safe and expeditious voluntary liquidation of Silvergate Bank." (added at 4:52 PM ET). The decision comes less than week after Silvergate Bank announced that it would discontinue the Silvergate Exchange Network . All other deposit-related services remain operational as the company works through the wind-down process, it said. On March 2, the company said it was assessing its ability to continue as a going concern , due to additional losses incurred and regulatory scrutiny. Earlier this week, Wedbush analyst David Chiaverini downgraded the stock to Underperform, citing its potential for liquidation.