Silvergate in crisis: Billions withdrawn, liquidations and losses mount
Silvergate lost nearly $1 billion in Q4 2022 alone as customers realized that FTX was once its biggest client.
Cryptocurrency news by Protos · Protos
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Show Notes
Crypto-friendly bank Silvergate posted a loss of $949 million for the final three months of 2022. Massive losses in the past few weeks have forced the company to lay off 40% of its staff. It expects to part ways with $8.1 million in restructuring costs, such as severance packages.
Customers withdrew a record-breaking $8 billion from Silvergate during the quarter. The bank’s largest customers, FTX and Alameda Research, filed for bankruptcy protection in November. As Silvergate liquidated assets to satisfy an avalanche of customers’ withdrawal requests, the bank lost hundreds of millions of dollars by selling bonds and other illiquid securities prior to their intended maturities. Silvergate will also pay a $134 million impairment charge for securities that it plans to prematurely sell during the first quarter of 2023.
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