Skip to content

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
Updated on

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.