Silvergate Capital to wind down operations, liquidate Silvergate Bank

La Jolla, Calif.-based Silvergate Capital Corp. plans to wind down operations and voluntarily liquidate its banking subsidiary, Silvergate Bank.

The decision includes full repayment of all deposits. The move is "the best path forward," considering recent industry and regulatory developments, according to a news release from the company.

Silvergate Capital is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets.

The announcement came shortly after the company discontinued the Silvergate Exchange Network, its flagship product.

Centerview Partners LLC is acting as financial adviser, Cravath Swaine & Moore LLP is acting as legal adviser and Strategic Risk Associates is providing transition project management assistance to Silvergate Capital in connection with its wind-down and liquidation plan.

Silvergate Capital's stock was down about 33.4% in after-hours trading at 4:42 p.m. ET on March 8.