WASHINGTON The U.S. Federal Reserve announced Thursday it was ordering Silvergate Bank to implement its previously announced plan to liquidate itself in a way that protects depositors and preserves its funds.

The order, which formalizes the bank's previously announced plans, prohibits the bank from distributing capital or dissipating cash assets without regulatory approval. The crypto-focused bank announced in March it would liquidate itself following the dramatic collapse of crypto exchange FTX.

(Reporting by Pete Schroeder; Editing by Chizu Nomiyama)