Mar 2023 Crypto Industry Updates

Content will be sorted chronologically with latest at the bottom.

• Crypto-focused bank Silvergate Capital Corp plans to wind down operations and voluntarily liquidate [9 Mar 2023]
  • Founded in 1988, Silvergate ventured into crypto in 2013.
  • One of two main banks for the crypto industry.
  • All deposits will be fully repaid, according to a liquidation plan shared on Wednesday.
• Stablecoin issuer Circle, have announced that USDC reserves have been impacted as a result of Silicon Valley Bank entering into receivership [11 Mar 2023]

  • Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25% portion of USDC reserves held in cash. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.https://t.co/NU82jnajjY

    — Circle (@circle) March 10, 2023

• New York regulators close Signature Bank [12 Mar 2023]
  • failure is the third-largest in US history
  • US Treasury Department and other bank regulators said in a joint statement on Sunday that all depositors of Signature Bank will be made whole
  • shareholders and certain unsecured debt-holders would not be protected
  • in September 2022, almost a quarter of Signature’s deposits came from the cryptocurrency sector
  • Coinbase says it has about US$240 million cash balance with Signature Bank
• Coinbase warned by SEC of potential securities charges [22 Mar 2023]
  • SEC issued crypto exchange Coinbase a Wells notice, warning the exchange that it identified potential violations of U.S. securities law.
  • Coinbase shares fell nearly 12% in extended trading after the news broke on Wednesday, adding to an 8.16% drop during regular trading hours.
• Crypto fugitive Do Kwon is arrested in Montenegro [23 Mar 2023]
  • founder of Terraform Labs and creator of the collapsed stablecoin Terra, has been charged with eight counts of fraud by federal prosecutors in the Southern District of New York, including:
    • wire fraud
    • commodities fraud
    • securities fraud
    • conspiracy to defraud
    • engage in market manipulation