Silvergate Announces Voluntary Liquidation

Published Mar 9, 2023
By Qredo Team

Qredo’s daily briefing gives you the visibility you need of the ever changing world of crypto to help you make the best decisions and reach your financial goals.

Silvergate Capital Corp., the holding company of Silvergate Bank, announced on Wednesday that it will voluntarily liquidate its assets and cease operations. The bank, one of the largest banks to serve cryptocurrency businesses, had come under scrutiny after it revealed a week earlier that it would need to delay filing its annual 10-K report due to inquiries from its independent auditors and accounting firm regarding its financial figures. This news has affected crypto prices across the board.

Meanwhile, according to a knowledgeable source, JPMorgan may be cutting ties with Gemini, the cryptocurrency exchange owned by Cameron and Tyler Winklevoss. As per a report by the Wall Street Journal, JPMorgan had begun banking services for both Gemini and Coinbase, a US-based exchange, at the beginning of 2020. Coinbase said that its relationship with JPMorgan remains intact.

The proposed budget of U.S. President Joe Biden, to be presented on Thursday, will feature a provision that seeks to eliminate tax loss harvesting on cryptocurrency transactions. A White House representative has verified that the budget will incorporate a tax provision that will minimize wash sales trading. Currently, investors have the ability to sell their crypto at a loss, declare the loss in their tax filings, and subsequently purchase the same amount and type of cryptocurrency once more.

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