Silvergate Bank announced losses in $1 billion – Bits Media

California bank Silvergate, specializing in cryptocurrency transactions, reported a clean loss in 1 billion dollars, which fell to the share of ordinary shares in the fourth quarter 2022 of the year.

The bank revealed the data in the report for the Commission on valuable US papers and exchanges (SEC). Bankers emphasized, that in the last quarter they observed a significant outflow of deposits and decided to support monetary liquidity through wholesale financing and the sale of debt securities. Silvergate is complained of a crisis of trust in the entire digital asset ecosystem, because of which customers began to abandon risky actions on trading platforms.

The average deposit of clients with crypto actures in the fourth quarter, The Silvergate team states, Compiled $7.3 billion. It is almost twice as lower, than in the previous quarter - $12 billion. Now the company is preparing for a long period of reducing deposits - trying to optimize expenses and revise its products, Firing unprofitable.

According to Silvergate CEO Alan Lain (Alan Lane), The team still believes in the digital assets industry and intends to maintain a highly liquid balance with strong capital.

At the end of last year against Silvergate Capital Corporation, Silvergate Bank and Alan Lane personally filed a lawsuit against the Southern District of California with the charge of direct participation in the fraud of representatives of the collapsed crypto officer FTX.