The Federal Reserve ordered Silvergate Capital in La Jolla, Calif., to stick to its plan to liquidate itself.
The Fed’s May 23 consent order gave the company 10 days to submit a self-liquidation plan that complies with California and federal requirements for shutting down. The order also requires quarterly reports on management’s progress.
The order also bars Silvergate from destroying records and instructed bank executives to cooperate fully with an investigation into the bank’s relationship with FTX.
The Fed and California’s Department of Financial Protection and Innovation will oversee and approve the self-liquidation plan, which must prioritize protecting depositors’ funds.
Silvergate, once a leader in banking crypto firms, announced plans to wind down on March 10, an announcement that preceded the failures of Silicon Valley Bank and Signature Bank.