- The closure of SEN will not affect other services
- More and more partners cut ties with the bank
Silvergate Company reported, which terminates the Silvergate Exchange Network. The firm called the decision “risk-based.”
A statement was published on the official website of the bank, it says:
“As of today, we have made the decision to terminate the Silvergate Exchange Network (SEN) based on all risks. But all other services related to deposits will continue to work in the future.”
The chain was shut down after Moody’s downgraded Silvergate’s credit rating for the second time in two weeks. The agency said it did so due to undercapitalization and management weaknesses. The company had to file an annual report with the SEC from which the company’s financial health could be assessed. But the company said that they do not have time to meet the deadline.
Now Silvergate is facing even bigger problems. Many companies including Cryptocom, Coinbase, Gemini, Galaxy Digital, Circle, Tether, and MicroStrategy have cut ties with the company. And the latter said that he does not store “a single bitcoin” in the accounts of the problem organization.
Due to significant problems, the company’s shares fell to a record low of $5.77. It is currently 97% of its all-time high in November 2021.