Silvergate Capital (NYSE:SI), a Federal Reserve member bank listed on the New York Stock Exchange, announced in a Thursday, January 5th filing that it has laid off 40% of its staff. This is about 200 employees.
Silvergate explained that during the “crisis of confidence” late last year forced by the collapse of FTX and Alameda Research, its clients pulled $8.1 billion in deposits.
Affected by the FTX collapse, Silvergate has also halted plans to launch a digital currency. It has also written off the $196 million related to its acquisition of the technology and assets of Diem.
The California-based group disclosed its preliminary fourth-quarter results, showing its deposits from digital assets.
In the report, Silvergate revealed that it sold $5.2 billion worth of debt at a loss of $718 million. Shares of Silvergate Capital sank 42.7% on Thursday after the crypto-focused bank released preliminary fourth-quarter results.
Silvergate’s decision underscores how the implosion of FTX affected the regulated financial sector.
Silvergate’s exposure to BlockFi is covered in:
Silvergate (SI) Says It Has Less Than $20M of BlockFi Deposit Exposure
The previous claims of Silvergate are covered in:
Silvergate (SI) CEO Attempts to Defend Company, Says It Has ‘Ample Liquidity’
See original on DailyCoin
Source: Cryptocurrency - investing.com
