Silvergate Crypto Friendly Bank to Lay Off 230 Workers

Todaysgist.com, Jakarta Silvergate Capital will significantly reduce its headcount, leaving the company with fewer workers to manage the liquidations of this crypto-friendly bank.

It is planned that 230 employees will be put on the layoff list, followed by additional layoffs at the end of the year. Even through filings with the Securities and Exchange Commission (SEC), the company said it would only have 80 employees.

California-based corporate lender Silvergate Bank closed in March. Lenders serving many crypto-native clients such as Coinbase, Circle, Paxos, and Gemini.

The company also operates an instant platform, SEN, which is widely used by the bank’s institutional clients.

“Silvergate’s remaining employees will assist with managing remaining company assets, answering various regulatory inquiries, and handling investigations into the bank and its parent company,” the company quoted a statement from Yahoo Finance, Friday (12/5/2023).

In the final fiscal quarter of 2022, Silvergate disclosed its clients withdrew USD 14 billion from lenders following the collapse of Sam Bankman-Fried’s crypto empire, FTX.

To cope with the rush of withdrawals, he thinned out his debt securities portfolio and took out sizable loans from state-sponsored banks, drawing criticism from some lawmakers.

The move announced today is larger than the one made by Silvergate in January. At that time, the company laid off 200 employees, a 40% reduction to deal with a “challenging macro environment”.