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Silvergate Stock Tumble 57%, Pulls Back Crypto Market 

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Silvergate Loses its Big Buck Clients

The list of clients Silverbank served include names like US crypto exchange Coinbase, Crypto.com, Bitstamp, Gemini, Kraken, USDC stablecoin issuer Circle, Paxos, Cboe Digital Market, and Galaxy Digital. All these crypto firms, except for Kraken, have announced the suspension of Automated Clearing House (ACH) transfers and terminated other existing business operations with the bank on Thursday, March 2, 2023. 

LedgerX, a crypto derivatives provider subsidiary of bankrupt crypto exchange FTX, was the first to break the connection with Silvergate. It suggested to its users via an email earlier to use the rival banking platform Signature instead of Silvergate for wire transfers. 

Now crypto exchange Kraken is the only who’s who remaining client for Silvergate, which continue using their services. 

Delay in Silvergate’s Annual Report

TheCoinRepublic reported earlier the chaos for the financial firm started rolling out after the announcement of the delayed annual report. It noted in its “notification for late filing” to the SEC that it defined the reason for its inability to file an annual 10-K filing until March 16, 2023. 

In its application to the Securities and Exchange Commission, the company cited a number of compliances that needed to be fulfilled before the annual report. The major concern of all was the pending regulatory investigations. It highlighted the past inquiries from the United States Department of Justice and other financial regulators and the possibility of bringing efficacies in the coming days. 

Losing its client base did not do any good for the bank. Silvergate stock price reflects the worsening situation with the company. SI stock price was trading at around 13.5 USD, dropping to 5.72 USD, shedding more than 57.7% of its value in just a day. The current trading price is at its lowest of its 52-week year range of 5.66-162.65 USD. 

Silvergate holds quite an influence in the crypto industry. The global crypto market capitalization dropped by 4% following the stock price fall. Major cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) are also traded in the red. Bitcoin price is currently trading at 22,409 USD after losing 4.2% and Ethereum at 1,507 USD after a 4.4% drop in the last 24 hours, according to CoinMarketCap data.  

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