Silvergate Raced to Cover $8.1 Billion in Withdrawals During Crypto Meltdown

According to the Wall Street Journal, the collapse of crypto exchange FTX sparked a run on Silvergate, forcing the bank to sell assets at a steep loss to cover some $8.1 billion in withdrawals.

Crypto-related deposits plunged 68% in the fourth quarter, the bank said in an early release of some quarterly results. To satisfy the withdrawals, Silvergate liquidated debt it was holding on its balance sheet. The $718 million it lost selling the debt far exceeds the bank’s total profits since at least 2013.

The bank has laid off 40% of its staff, or about 200 employees, and said it would pare back its businesses. It shelved a plan to launch its own digital currency.