Silvergate sold assets at loss and cut staff to cover $8.1B in withdrawals: Report
Silvergate has reportedly laid off 200 members of its staff, which is around 40% of its total number of employees. The FTX debacle has triggered a bank run on Silvergate, causing the company to sell off its assets at a loss and cut staff by 40% to cover $8.1 billion worth of customer withdrawals . According to a report published by the Wall Street Journal, the bank liquidated debt that it was holding on its balance sheet to keep up with withdrawals, losing $718 million in the process. The loss reportedly surpasses the firm’s profits since 2013. In addition, crypto-related deposits in the firm have dropped by 68% in the fourth quarter of last year. Because of this, Silvergate dismissed around 200 employees, which was 40% of its total personnel. Apart from this, the bank also canceled a plan to launch its own digital currency project, writing off almost $200 million that it paid Facebook to buy the technology it built for the Diem project. Despite this, the bank remains positive in ...