The cryptofocussed Bank Silvergate deletes 40 % of the workforce and gives up several projects

"While we enter a new year and continue to move through the current environment, we focus on our strategy to offer our core customers in the field of digital assets with the greatest added value."

• In an early publication of part of the results of the fourth quarter of Silvergate, the bank said that deposits in connection with cryptos have decreased by a remarkable $ 11.9 billion to $ 3.8 billion. $
• by the end of 2022, $ 150 million of the Silvergae deposits of customers who had applied for bankruptcy protection.
• During this time there was a liquidity crisis. As a result, it resorted to the liquidation of the debts, which it held in his balance sheet to pay withdrawals. The company lost $ 718 million, which far exceeded its total profit since 2013.
• The company based in California also plans to delete the start of its own digital currency project and write down the $ 196 million that has paid the social media giant Facebook for the purchase of the technology that it built for the DIEM project.
• After the business update, the Silvergate share in pre-exchanged trade crashed by over 47 %.
• The FTX's bankruptcy sent Silvergate into a bank run that forced the platform to sell assets with a significant loss in order to cover leaning of around $ 8.1 billion.
• The struck investor confidence led to a severe decline in the deposits. But Silvergate could operate in such turbulent times because it is structured very differently than most banks.
• Despite the downturn, the bank assured its customers that they have sufficient funds to cope with a "persistent transformation phase".