Embattled crypto-friendly bank Silvergate is working with regulators to cease a total shutdown of operations.

In line with a Tuesday document from Bloomberg, examiners from the Federal Deposit Insurance protection Company (FDIC) were sent to Silvergate’s headquarters in California final week.

The FDIC officers were licensed to drag to Silvergate’s locations of work by the Federal Reserve, and are currently reviewing the bank’s books and recordsdata.

News of Silvergate’s perilous financial wretchedness used to be made public final week, when the company disclosed an ongoing investigation by the U.S. Department of Justice (DOJ), sending its stock rate down with reference to 60% in a single day. Unsurprisingly, what followed used to be an exodus of the bank’s high purchasers, which integrated predominant crypto companies like Coinbase, Kraken, Gemini and Circle.

The company additionally suspended its Silvergate Substitute Community (SEN) – a 24/7 crypto funds community widely aged by institutional purchasers.

Silvergate had $6.3 billion price of deposits as of Dec. 31, marking a indubitably broad decline since the $13.2 billion it reported in September.

In line with hedge fund investor Impress Cohodes, the FDIC’s involvement doesn’t essentially mean true recordsdata. (Cohodes and Lumida CEO Ram Ahluwalia discussedhow FTX’s implosion might perchance also impact Silvergate in an episode of Unchained in January).

Though its future seems bleak in the eyes of many industry watchers, the bank is silent exploring alternate choices to pause afloat.

Seeing as Silvergate’s deposits are insured by the FDIC, the regulator might perchance also play a most essential fragment in these efforts. In line with other folks conversant in the subject, one imaginable resolution involves lining up crypto-industry merchants to bolster its liquidity. The bank is yet to operate a name on how absolute top to address its ongoing financial catch 22 situation.