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Silvergate Capital Fires 40% of Staff Amid Weak Q4 Stats

  1. Silvergate Capital has laid off 40% of its total workforce.
  2. The company currently has more than enough funds to cover customer withdrawals.
  3. Meanwhile, the SEC has filed an objection to Binance’s acquisition of Voyager.

Silvergate Capital appears to be next on the array of crypto-related firms that have suffered huge losses in 2022. According to a press release published by Seeking Alpha, the company has been selling assets to cover customer withdrawals.

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Specifically, the firm revealed that customer deposits plummeted in the last quarter of 2022 from Q3’s $11.9 billion to only $3.8 billion.

To resolve the issue, Silvergate had to undergo a series of adjustments. Foremost, the company laid off around 200 employees, comprising 40% of its total workforce. The company also sold $5.2 billion of debt securities for cash proceeds during the said quarter.

By and large, Silvergate held around $6.4 billion in total cash and cash equivalents as of December 31, 2022. According to the company, this is in excess of deposits from crypto customers.

The massive customer exodus also happened in a similar timeframe as the collapse of FTX. Other big names such as Voyager and Celsius — not to mention FTX — became bankrupt earlier last year.

In other news, the US Securities Exchange Commission (SEC) was alleged to have filed an objection to the planned acquisition of Voyager by Binance. According to John Deaton, a US legal expert, this may escalate to a lawsuit in the future.

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Jesus Dawal

Jesus Dawal Jr covers news related to the crypto space in Asia and in Australia, although he follows the latest events in the US and Europe as well. He is most interested in the blockchain gaming and regulation aspects of the industry.

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