{"id":105192,"title":"Crypto-focused bank Silvergate bank forced to fire 40pc of staff as FTX fallout deepens","publisher":"Share Talk","author":"sharetalk","published":"2023-01-05T14:58:45+00:00","modified":"2023-01-05T14:58:45+00:00","canonical_url":"https://www.share-talk.com/crypto-focused-bank-silvergate-bank-forced-to-fire-40pc-of-staff-as-ftx-fallout-deepens/","markdown_url":"https://www.share-talk.com/crypto-focused-bank-silvergate-bank-forced-to-fire-40pc-of-staff-as-ftx-fallout-deepens.md","json_url":"https://www.share-talk.com/crypto-focused-bank-silvergate-bank-forced-to-fire-40pc-of-staff-as-ftx-fallout-deepens.json","category":"B2B","categories":["B2B","Business & Support Services","Fintech","Technology","Technology, Media & Telecoms"],"tags":["Assets","bankruptcy","bear","Binance","Bitcoin","bonds","BTC","Caroline Ellison","Coinbase","consumers","Crypto","cryptocurrency","customers","decentralized","Exchange","exchanges","FTX","Gary Wang","GYEN","hard","John J. Ray III","Market","proceedings","protection","Sam Bankman-Fried","Share Talk","SHARES","Silvergate bank","stablecoin","Token","U.S","USA","Yen"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&quality=89&ssl=1","format":"news","language":"en-GB","content":"Silvergate, a crypto-focused bank, is set to reduce 40% of its staff in response to the crisis in digital asset sectors sparked by Sam Bankman-Fried’s collapse.\n\nThe sector’s meltdown, triggered in November by the bankruptcy of crypto exchange FTX, led to an $8.1bn (£6.8bn), run on Silvergate deposits in the final quarter of last year.\n\nAccording to a statement, the bank in California had to sell assets for $718m (£610m) today.\n\nhttps://twitter.com/Share_Talk/status/1611007925333463041?s=20\n\nThe company’s shares plunged 41pc and fell to $13 during pre-market trading in New York.\n\nThis comes as regulators intensify their scrutiny of digital assets sectors in the wake of the collapse of Sam Bankman Fried’s FTX.\n\nAccording to bankruptcy court filings, the US Securities and Exchange Commission has rejected Binance US’s plan for crypto exchange Binance US to purchase Voyager Digital, a bankrupt crypto lender. The deal is estimated at $1 billion.\n\nAs confidence plunges in the crypto sector, Silvergate has decided to lay off around 200 employees.\n\nIn a statement, the crypto-focused bank stated:\n\n> Digital-assets industry has seen a significant transformation, with high-profile bankruptcies and over-leverage leading to significant financial losses.\n>\n> These dynamic have caused a crisis in confidence throughout the ecosystem, leading many industry players to shift to a risk off’ position across digital-asset trading platform.\n\nAccording to the company, it believes in digital assets and is committed to “highly liquid balance sheets with strong capital positions.”\n\nSilvergate’s total digital-asset deposits declined to $3.8bn by the end of the fourth quarter."}