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Posted on Mar 07, 2023Read on Mirror.xyz

Bloomberg: Silvergate is negotiating with the FDIC on how to stay in business

Officials at the U.S. Federal Deposit Insurance Corporation (FDIC) have been in talks with executives at troubled crypto bank Silvergate Capital on how to help the company stay in business, according to Bloomberg, citing people familiar with the matter. One of the options was to recruit crypto industry investors to help boost Silvergate’s liquidity, one source said. Last week the Federal Reserve authorized inspectors from the FDIC, the main federal regulator for Silvergate, to visit Silvergate's La Jolla, Calif., headquarters. According to previous news, Silvergate announced last week that it would delay the submission of its annual report because it needs to accept inquiries and investigations from regulators. The company further warned that its ability to "continue as a business" could be affected. Shares in Silvergate then fell more than 50 percent to record lows. Silvergate also announced that it will suspend Silvergate Exchange Network (SEN) services.