Federal Deposit Insurance Corporation (FDIC) officials have been in talks with executives at troubled crypto bank Silvergate Capital about how to help the company continue operating, people familiar with the matter said.
One option is to recruit crypto industry investors to help boost Silvergate’s liquidity, one of the sources said. Last week, the Federal Reserve authorized FDIC examiners to visit Silvergate’s headquarters in La Jolla, California. The Fed is Silvergate’s lead federal regulator.
As previously reported, Silvergate announced last week that it would postpone submitting its annual report because it needed to accept inquiries and investigations from regulators. Silvergate further warned that its ability to "continue to operate" might be affected. Subsequently, Silvergate's stock price fell by more than 50%, hitting a record low. Silvergate also announced that it would suspend the Silvergate Exchange Network (SEN) service. (CoinDesk)