Silvergate Trims 40% Staff, Cuts Biz Ops
To honour the withdrawal requests, Silvergate liquidated debt from its balance sheet, incurring a loss of $718 million.
FTX, the bankrupt cryptocurrency exchange based in the Bahamas, and its subsidiaries accounted for approximately US$1 billion of the bank’s deposits.
Since then, the bank has cut 40% of its workforce and announced a reduction in business operations.
According to Silvergate, crypto deposits at the bank fell 68% to US$3.8 billion in the fourth quarter of 2022, from US$11.9 billion in the third quarter. Despite the losses, the bank stated that it will continue to provide crypto-related services to its customers.
(Reporting by Shikha Singh; Editing by Kapil Rajyaguru)
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