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Crypto bank Silvergate posts $1bn loss

Crypto bank Silvergate posts $1bn loss

Crypto-focussed bank Silvergate has posted a $1 billion loss for the fourth quarter, confirmed that it has laid off 200 staff, and says it will offboard some customers as it seeks to recover from the fallout of FTX's collapse.

Silvergate held deposits for FTX businesses and Almeda Research. When the exchange collapsed, the bank's customers withdrew more than $8 billion in digital asset deposits.

Silvergate was forced to sell $5.2 billion in assets at a loss to cover the cost and remain liquid - leading to the fourth quarter loss.

The bank says that to prepare for a "sustained period of transformation" it will offboard some non-core customers and ditch some of its product portfolio.

It has also confirmed that 40% of its workforce - 200 people - have been laid off and that it has written off the $196 million price its paid for the assets of Facebook's digital currency, Diem.

Alan Lane, CEO, Silvergate, says: “While we are taking decisive actions to navigate the current environment, our mission has not changed. We believe in the digital asset industry, and we remain focused on providing value-added services for our core institutional customers.

"To that end, we are committed to maintaining a highly liquid balance sheet with a strong capital position.”

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