Silvergate’s Big Crypto Losses Feed Watchdogs’ Worst Fears
- Bank says it’s evaluating ability to remain a ‘going concern’
- That follows regulatory push to keep crypto out of bank system
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For months, US authorities have been racing to sever ties between banks and risky crypto ventures, worried the financial system could someday suffer serious losses. They may have been too late.
In the starkest warning yet by a US bank catering to the sector, Silvergate Capital Corp. said Wednesday it needs more time to assess the extent of damage to its finances stemming from last year’s crypto rout — including whether it can remain viable. The shares plunged about 30% in premarket trading on Thursday.