What is Silvergate fallout that is pulling down crypto market

Why does this story matter?

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The FTX collapse was a massive hit to the crypto market. The tremors of the collapse shook the industry to its bones.

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Silvergate is evaluating its ability to continue as "going concern"

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Earlier this week, Silvergate announced in an SEC filing that its 10-K (a report of a publicly traded company's financials) filing would be delayed.

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The company hinted at more regulatory scrutiny

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In the filing, the bank also warned about more regulatory scrutiny. It said it could be affected by "various litigation (including private litigation) and regulatory and other inquiries and investigations."

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Customers withdrew massively from Silvergate after FTX collapse

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Silvergate's issues began after the FTX collapse. The bank suffered massive withdrawals out of fear.

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Silvergate's shares fell by over 50%

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Silvergate's SEC filing was followed by a flurry of activity. Its shares plunged 58% by the close of Thursday's trading session.

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