According to the Wall Street Journal, cryptocurrency bank Silvergate liquidated $718 million in debt it held on its balance sheet at a loss. Such measures were taken amid a tremendous demand for withdrawals following FTX’s bankruptcy. The company’s clients withdrew about $8.1 billion.
To date, Silvergate’s loss has exceeded the bank’s profits since 2013, and customer deposits are down 68% for the fourth quarter of 2022.
The company was also forced to cut 40% of its staff (200 employees) amid the recession.
In addition, the bank postponed a plan to launch its own digital currency, writing off $196 million it spent to buy Diem from Facebook.
However, Silvergate said it remains committed to the digital asset industry and has enough cash to go through the transformation phase.