Like most of the industry, crypto friendly banks have suffered from the FTX debacle. Silvergate recorded in the last three months of 2022 a net loss of $949 million, while customers withdrew around $8 billion. The company has been forced to reduce its headcount by 40%. The layoffs will cost the bank $8.1 million.
It is a radical contrast to the $76 million in net income that were registered in the fourth quarter of 2021. Alameda Research, the sister-trading firm of FTX, had accounts at the bank, and the unfolding of the story caused a situation similar to a run on the bank. According to Bloomberg, SBF’s empires’ accounts represented less than 10% of the $11.9 billion from customers of the crypto industry.
Despite the bad numbers, Silvergate’s shares are up around 5%, but it lost around 90% in 2022.
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