Silvergate, the Crypto-Focused Bank Affected by FTX Bankruptcy, Sells at a Loss!

cryptocurrencies and crypto-focused bank interested in its industry silvergate Bench He also announced that he was affected by the bankruptcy of FTX.

The bank said it sold its assets at a loss and laid off 40% of its staff to meet $8.1 billion worth of withdrawal requests following FTX’s bankruptcy.

Silvergate Bank stated that despite the difficulties experienced after FTX’s bankruptcy, they remain committed to crypto.

Announcing its quarterly results early, the bank said that its crypto-related deposits fell 68% in the fourth quarter of 2022.

Stating that it has dismissed approximately 200 employees, the bank added that it will reemploy the dismissed employees.

The bank shelved plans to launch its own digital currency other than selling at a loss.

In this context, it also erased the $196 million it had spent to buy the technology and assets of Diem, Facebook’s attempt to launch a crypto-based payment network.

Catering to crypto companies, Silvergate Bank takes deposits from crypto companies and operates a network that connects investors to crypto exchanges.

In this regard, the bank said that FTX and other companies controlled by its founder, Sam Bankman-Fried, accounted for about $1 billion in deposits.

The bank stated that although they sold at a loss after FTX’s bankruptcy, they remained committed to crypto and had the funds to handle this difficult transformation period.

“While Silvergate takes determined steps to navigate the current environment, its mission has not changed.

Silvergate believes in the digital asset industry. The withdrawal requests that followed the bankruptcy of FTX are the result of a crypto trust crisis.”

Silvergate Bank said it had $3.8 billion in cash at the end of the fourth quarter, and $4.6 billion more than those deposits.

The bank also holds another $5.6 billion in debt securities, such as U.S. Treasuries, which can be sold quickly.