Silvergate Bank to cut 230 staff as it winds down

Please fol­low and like us:
Pin Share

Sil­ver­gate Bank will sig­nif­i­cant­ly reduce its staff head­count as it winds down oper­a­tions, accord­ing to an SEC fil­ing sub­mit­ted May 11.

The failed cryp­to-friend­ly bank will let go of about 230 employ­ees on May 12, leav­ing just 80 offi­cers and employ­ees at the firm.

The remain­ing staff will con­tin­ue to pur­sue the company’s liq­ui­da­tion, will coop­er­ate with inquiries and inves­ti­ga­tions, and will attempt to pre­serve the remain­ing val­ue of the company’s assets.

Addi­tion­al reduc­tions would also take place on June 30, Aug. 30, and Nov. 30 of this year, but it was not stat­ed how many staff would be laid off on those dates, accord­ing to the filing.

The bank will spend $10.7 mil­lion on sev­er­ance and reten­tion bonus pay­ments. The com­pa­ny will also spend $2.8 mil­lion on employ­ee ben­e­fits and job place­ments, mean­ing that the reduc­tion will cost Sil­ver­gate about $13.6 million.

Sil­ver­gate Bank announced it would halt oper­a­tions and under­go liq­ui­da­tion on March 8. It expe­ri­enced a bank run short­ly before that when it sub­mit­ted an SEC fil­ing dis­clos­ing appar­ent dif­fi­cul­ties. Specif­i­cal­ly, the bank said it would be unable to file its 10‑K report — and the com­pa­ny reit­er­at­ed its inabil­i­ty to do so in today’s filing.

Numer­ous cryp­to com­pa­nies used Sil­ver­gate for cer­tain trans­ac­tions, while oth­ers had finan­cial expo­sure to the com­pa­ny. How­ev­er, sev­er­al com­pa­nies dis­tanced them­selves from Sil­ver­gate pri­or to or dur­ing the company’s March collapse.

The post Sil­ver­gate Bank to cut 230 staff as it winds down appeared first on Cryp­toSlate.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *