Silvergate will delay the release of its annual report due to regulatory and Department of Justice investigations, or face ongoing operational issues

ChainCatcher news, according to Bloomberg, crypto bank Silvergate stated in a document on Wednesday local time: the company is currently analyzing certain regulatory and other pending inquiries and investigations against it, and is unable to submit its annual report on time. Additionally, the document disclosed: "The company's independent registered public accounting firm has also requested detailed information related to such matters, and the company is responding to such requests."

Silvergate indicated that it sold additional debt securities in January and February, and losses related to its securities portfolio, along with other factors, may impair its ability to continue as a going concern. It also stated that it is under investigation by the U.S. Department of Justice, confirming Bloomberg's report last month that the DOJ's fraud division is investigating Silvergate's transactions with FTX and Alameda Research.

Due to the "going concern" issue raised in the regulatory filing, Silvergate Capital's stock price fell 29% in after-hours trading on Wednesday. (Bloomberg)