Silvergate Capital Lays Off 40% of Staff: Crypto Bank Struggles After FTX Collapse

Trouble is brewing for crypto bank Silvergate as the company cuts staff by 40% and sells assets at a loss to cover $8.1 billion worth of customer withdrawals. The Cryptocurrency bank Silvergate Capital has laid off 40% of its staff, or about 200 employees, after the collapse of FTX.com sparked mass withdrawal requests worth billions. According to reports, Silvergate Capital has laid off around 40% of its workforce. As per an official filing from Thursday, the Crypto-Centric bank has let go of 200 employees, signaling significant restructuring.

Silvergate cut 40% of its staff, or 200 employees, to account for the economic realities facing its business and the cryptocurrency industry as a whole, the firm announced. This drastic measure highlights the challenges faced by crypto-related businesses in the wake of recent market volatility and the fallout from the FTX collapse. The significant reduction in workforce reflects the impact of mass customer withdrawals and the need for Silvergate to adapt to a new economic landscape. Investors and analysts are closely watching Silvergate's next steps as the company navigates this difficult period.

Stay tuned for further updates on Silvergate Capital and the evolving situation within the cryptocurrency banking sector.