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Jan 5 (Reuters) – Silvergate Capital Corp’s (SI.N) crypto-related filings fell in the fourth quarter, according to a preliminary earnings report on Thursday, as crypto sentiment deteriorated following the slump in the FTX exchange led to increased withdrawals.
The company also said it was cutting its workforce by 40%, or about 200 employees, following an industry downturn.
Total digital asset customer deposits decreased to $3.8 billion at the end of December 31, 2022, from $11.9 billion at September 30, 2022.
To maintain liquidity, the bank sold $5.2 billion in assets with a loss of $718 million in the fourth quarter.
More than $1 trillion in value was wiped out of the crypto sector last year, with rising interest rates heightening fears of an economic slowdown. The crash knocked out key industry players such as crypto hedge fund Three Arrows Capital and crypto lender Celsius.
Yet the biggest blow to the sector came after major crypto exchange FTX filed for bankruptcy protection in November. Its rapid fall has sparked harsh regulatory scrutiny of how crypto firms hold funds and conduct business operations.
Reporting by Manya Saini in Bangalore; Editing by Subhranshu Sahu
Our standards: The Thomson Reuters Trust Principles.
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