Silvergate Lays Off 230 Employees, Leaving 80 Remaining at Liquidated Bank

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Sil­ver­gate said that it would lay off approx­i­mate­ly 230 employees. 

In an SEC fil­ing dat­ed May 12, the com­pa­ny said the lay­offs would leave approx­i­mate­ly 80 employ­ees at Sil­ver­gate to fin­ish liq­ui­dat­ing the bank. 

“Addi­tion­al incre­men­tal reduc­tions in head­count are expect­ed to occur on each of June 30, 2023, August 30, 2023 and Novem­ber 30, 2023 or lat­er,” the fil­ing said. 

The 80 remain­ing employ­ees will “focus on imple­ment­ing the Bank Liq­ui­da­tion, pre­serv­ing the resid­ual val­ue of the Company’s assets and address­ing the reg­u­la­to­ry and oth­er inquiries and inves­ti­ga­tions that are pend­ing with respect to the Com­pa­ny and the Bank.”

Accord­ing to Pitch­book, Sil­ver­gate had approx­i­mate­ly 400 employ­ees as of 2022. 

In Jan­u­ary, the com­pa­ny announced that it was cut­ting 200 employ­ees, or 40% of its workforce. 

Fol­low­ing the job cuts, in March, Sil­ver­gate announced its intent to “wind down oper­a­tions” and vol­un­tar­i­ly start­ed liq­ui­dat­ing the bank. 

It also promised a “full repay­ment of all deposits.”

The deci­sion to shut down was made just two months after earn­ings revealed a $1 bil­lion fourth-quar­ter loss. 

The cryp­to-friend­ly bank, rumored to be FTX’s pri­ma­ry bank, had faced cus­tomer with­drawals in the wake of the FTX crash.

The bank, how­ev­er, man­aged to just miss the down­turn in the bank­ing sec­tor which saw three US banks fail.

Sil­i­con Val­ley Bank offi­cial­ly fell two days after Sil­ver­gate announced its liq­ui­da­tion, on March 10. The bank run that caused the Feds to step in for SVB also impact­ed Sig­na­ture just days lat­er. Then the domi­no effect caused First Repub­lic Bank to fail.


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