{"id":43456,"date":"2023-01-05T19:26:53","date_gmt":"2023-01-05T23:26:53","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=43456"},"modified":"2023-01-05T19:26:56","modified_gmt":"2023-01-05T23:26:56","slug":"silvergate-cuts-workforce-sold-assets-at-steep-loss","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/silvergate-cuts-workforce-sold-assets-at-steep-loss\/","title":{"rendered":"Silvergate Cuts Workforce, Sold Assets At Steep Loss"},"content":{"rendered":"\n
Silvergate has reportedly laid off 200 members of its staff<\/a>, which is around 40% of its total number of employees.<\/h5>\n\n\n\n
\"Silvergate
Silvergate Cuts Workforce, Sold Assets At Steep Loss<\/figcaption><\/figure>\n\n\n\n

In order to cover client withdrawals totaling $8.1 billion, Silvergate had to sell off its assets at a loss and reduce employees by 40% as a result of the FTX fiasco<\/a>.<\/p>\n\n\n\n

The bank lost $718 million by selling debt that it had been holding on its balance sheet in order to keep up with withdrawals, according to a story in The Wall Street Journal. <\/p>\n\n\n\n

According to reports, the loss exceeds the company's profits since 2013. Additionally, the firm's crypto-related deposits fell by 68% in the final quarter of 2017.<\/p>\n\n\n\n

Due to this, Silvergate let go of 200 employees, or 40% of the whole workforce. Additionally, the bank abandoned plans to introduce its own digital currency\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, paying out nearly $200 million it paid Facebook to acquire the technology it developed for the Diem project.<\/p>\n\n\n\n

Despite this, the bank says it is still committed to cryptocurrencies and that it has the resources necessary to manage a transition period. In order to handle the current market environment, the bank emphasized that it is “taking decisive action.”<\/p>\n\n\n\n

Congressmen in the US have been investigating the bank due of its connections to FTX and Alameda Research<\/a>. On December 6, three U.S. senators sent a letter to Silvergate requesting information about the bank's role in client losses brought on by the collapse of the FTX exchange.<\/p>\n\n\n\n

According to the letter, the company's involvement in transferring FTX customers' funds to Alameda appears to be a failure on its part to watch over and report suspicious activities.<\/p>\n\n\n\n

In an effort to hold Silvergate accountable for its claimed roles in the theft of FTX client monies, a class-action complaint was launched against Silvergate on December 16. The bank was accused of contributing to “furthering FTX's investment fraud,” according to the lawsuit<\/p>\n","protected":false},"excerpt":{"rendered":"

Silvergate has reportedly laid off 200 members of its staff, which is around 40% of its total number of employees. In order to cover client withdrawals totaling $8.1 billion, Silvergate had to sell off its assets at a loss and reduce employees by 40% as a result of the FTX fiasco. The bank lost $718 […]<\/p>\n","protected":false},"author":43,"featured_media":43458,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/01\/croc_1672960490165.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/43456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=43456"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/43456\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/43458"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=43456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=43456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=43456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}