Silvergate, on the other hand, was not acquired but rather voluntarily dissolved by its management team. Following this decision, none of its executives have spoken out about the matter. In early 2023, the San Francisco Federal Reserve informed Silvergate, with apparent approval from other regulators, that they needed to significantly reduce their cryptocurrency deposits to a minimal portion of their overall business. This mandate proved to be detrimental to their operations, as more than 90% of their deposits were related to the crypto industry as of the second quarter of 2022. Despite experiencing a bank run in December 2022 and January 2023, Silvergate remained financially stable. In the end, they were able to fully reimburse all depositors, even though they were denied access to emergency liquidity from the Federal Home Loan Bank due to pressure from Senator Elizabeth Warren (D-MA).
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