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The End of SEN: Silvergate Discontinues its Exchange Network
Once a key piece of the digital asset industry’s infrastructure enabling 24/7 fiat-to-crypto transactions, Silvergate’s SEN is now officially discontinued.
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- On Friday, March 3rd, Silvergate posted a notice to its website stating that it has made a “risk-based decision” to discontinue SEN.
- According to the notice, all other deposit-related services are still operational.
- Silvergate saw a mass exodus of its partners from the cryptocurrency sector this Thursday.
- The bank’s shares plummeted more than 50% between Wednesday and Thursday after the bank revealed it is postponing its 10-K filing.
- The turmoil caused by Silvergate’s woes saw the price of BTC and ETH drop about 5% on Friday.
- Silvergate’s troubles began in earnest after the collapse of FTX last November.
- In early January, it was uncovered that the bank suffered a bank run worth more than $8 billion.
- By February, rumors that the DoJ is preparing a probe over the company’s involvement with SBF’s fallen empire surfaced.
- The rumors were seemingly confirmed in Silvergate’s recent filing with the SEC.
- Silvergate once served as the go-to bank for cryptocurrency companies that needed to make quick fiat-to-crypto transactions.
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Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
