Silvergate is a US-based banking firm that holds crypto assets too. The US bank Silvergate has suffered a loss in due to the “crypto-winter” season that has washed out many other firms too. The strong crypto chills have been producing a wave of loss and even stable firms are not able to survive the impact.
The most severe loss to the crypto industry was caused by the FTX fraud case that happened in November month of 2022. FTX’s ex-CEO Sam Bankman-Fried has recently pleaded guilty to being involved in a fraud that caused a loss of around $32 billion to the company.
Also Read: FTX Crypto Assets Worth $3.5 billion Seized!!
US Bank Silvergate Faces Loss of $8 billion in Crypto Investments
Silvergate has lost two-thirds of its bank customers since the last quarter of 2022. Also, the company has been brought down to its knees as the crypto market has been plunged down by a significant mark. The prime cause of the fall is that the unsound fluctuation in the market has caused a disturbance in the market. That is a reason various crypto investors have pulled back their assets and that has led to an even greater downfall of the crypto economy.
The US bank Silvergate comes under the New York stock exchange and it has faced a major downfall of $8 billion in its crypto assets. The sum valued at around £6.7 billion. They faced the loss soon after FTX faced a crash of $32 billion after Sam Bankman-Fried defrauded the firm by helping Alameda Research with funds from FTX clients. The company went down and that affected Silvergate as well.
US bank Silvergate was a small firm until 2019, but after that, they hopped into including crypto investments. The firm gained a great valuation in the last two years. The company received its maximum hike in 2021 gaining 1500% raise in crypto sales. But the company soon faced a backlash of $8 billion recently and to cover it up, Silvergate sold assets worth $5.2 billion to remain liquid. Moreover, the company reduced its staff by 40% which counted around 200 people in the country. The company has faced a loss of $718 million in bank funds that value more than the total profit the company has made since 2013.
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