Silvergate Bank, which is facing class action lawsuits over the FTX deal and Alameda Research, has posted a net loss of $1 billion. In the fourth quarter of 2022
inreport According to a filing released by the United States Securities and Exchange Commission (SEC), digital asset banks highlighted massive deposit outflows in the final quarter of 2022 and took steps to maintain cash liquidity, which included to wholesale funding and the sale of bonds
The company also emphasizes “Change” in the digital asset space, noting that A crisis of trust across the ecosystem has led customers to take risks. and instead focus on protecting their funds on crypto trading platforms.
According to the report, average deposits of digital asset customers in the fourth quarter of 2022 were $7.3 billion. This was a significant decrease compared to the third quarter of the year. which used to have deposits of about 1.2 billion dollars
Amid the challenges, Silvergate CEO Alan Lane stressed that the company remains confident in the digital asset industry and remains “committed to maintaining a highly liquid balance sheet with a strong capital position.”
As of Jan. 5, Silvergate was laying off about 200 employees, about 40% of its workforce. As part of its persistence efforts, the company has also scrapped plans to launch a digital currency project, cutting $200 million that would be spent on buying technology developed by Facebook.
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