Silvergate Announces 40% Job Cut, Halts Plans to Acquire Diem’s Assets
Silvergate, a crypto-focused bank, has been forced to cut 40% of its staff as the fallout sparked by the collapse of Sam Bankman-Fried’s empire worsens. It has also halted the acquisition of assets related to Diem. Silvergate Capital, a Federal Reserve member bank listed on the New York Stock Exchange, announced in a Thursday, January 5th filing that it has laid off 40% of its staff. This is about 200 employees. Silvergate explained that during the “crisis of confidence” late last year forced by the collapse of FTX and Alameda Research, its clients pulled $8.1 billion in deposits. Affected by the FTX collapse, Silvergate has also halted plans to launch a digital currency. It has also written off the $196 million related to its acquisition of the technology and assets of Diem. The California-based group disclosed its preliminary fourth-quarter results, showing its deposits from digital assets. In the report, Silvergate revealed that it sold $5.2 billion worth of debt at a loss of $718 million. Shares of Silvergate Capital sank 42.7% on Thursday after the crypto-focused bank released preliminary fourth-quarter results. Silvergate’s decision underscores how the implosion of FTX affected the regulated financial sector. Silvergate’s exposure to BlockFi is covered in: The previous claims of Silvergate are covered in:Silvergate Lays Off 40% of Staff
Silvergate’s Stock Plummets by 43%
On the Flipside
Why You Should Care
Silvergate (SI) Says It Has Less Than $20M of BlockFi Deposit Exposure
Silvergate (SI) CEO Attempts to Defend Company, Says It Has ‘Ample Liquidity’
Read more: https://dailycoin.com/silvergate-announces-job-cut-halts-plans-to-acquire-diems-assets/
Text source: DailyCoin.com
