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Silvergate Tumbles After FTX Implosion Prompts $8.1 Billion Bank Run

  • Customers withdraw $8.1 billion of digital-asset deposits
  • Collapse of crypto exchange FTX leaves Silvergate reeling
Bloomberg business news
Silvergate Sinks by Record on Deposit Run, Staff Layoffs
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Silvergate Capital Corp. shares plunged after the bank said the crypto industry’s meltdown triggered a run on deposits, prompting the company to sell assets at a steep loss and fire 40% of its staff.

Customers withdrew about $8.1 billion of digital-asset deposits from the bank during the fourth quarter, which forced it to sell securities and related derivatives at a loss of $718 million, according to a statement Thursday. Executives said on a conference call that Silvergate may become a takeover target.