The confirmation of the slump in Silvergate's deposits of $ 8 billion leads to a decline in the share price by more than 40 % finance

The share price of the Bank Silvergate Capital, focused on crypto fell by over 40 %after reporting a decline in customer deposits by more than $ 8 billion. The stock price was collapsed only a few days after US prosecutors reported that the accounts of the collapsed crypto exchange FTX had confiscated the collected accounts of the collected accounts. Alan Lane, the CEO of Silvergate, rejected allegations that the bank does not adhere to the bank rules.

Silvergate wants to reduce personnel by 40 %

The value of the shares of the cryptofocussed Bank Silvergate Capital has reported more than 40 % after reporting a severe decline in its digital currency -related assets in the fourth quarter (Q4). Overall, the bank's shares have lost 69 % of value since the spectacular collapse of the FTX crypto exchange in November 2022.

As a result of the decline in crypto-related deposits by more than $ 8 billion, Silvergate said that it would try to contain the losses by reducing its workforce by 40 %. As from Reuters, Test report Silvergate the collapse of the FTX crypto exchange for the decline in customer deposits from $ 11.9 billion in September to be responsible for $ 3.8 billion at the end of the fourth quarter.

Silvergate confirmation of the decline in the customer deposits came a day after a lawyer from the United States had told an insolvency court that US prosecutors had confiscated bank accounts with the cryptofocussed bank and the Farmington State Bank. According to the report, court files show that the bank accounts included around $ 143 million.

CEO rejects allegations of violation of banking secrecy

In addition to the loss of $ 718 million, which was created after it was forced to sell guilt for $ 5.2 billion, Silvergate reports that it would "make a reduction in $ 196 million" to the blockchain-based payment solution, which it acquired.

In his conference on the phone with analysts before the provisional result report was published, Silvergate's CEO Alan Lane reported reports that the bank does not adhere to the requirements of the Know Your Customer and the Bank Secrecy Act.

"The misinformation there are frankly frustrating.

At the time of the drafting of this article, the Silvergate share price after business end (7:59 p.m. EST) was $ 11.93

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Terence Zimwara

Terence Zimwara is an award -winning journalist, author and writer from Zimbabwe. He wrote in detail about the economic problems of some African countries and how digital currencies Africans can offer an escape route.

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