California-based cryptocurrency bank Silvergate reported a $1 billion net loss to common shareholders in the fourth quarter of 2022.
The bank disclosed the data in a report to the US Securities and Exchange Commission (SEC). The bankers stressed that they saw a significant outflow of deposits in the last quarter and decided to support cash liquidity through wholesale financing and the sale of debt securities. Silvergate is complaining about the crisis of confidence in the entire digital asset ecosystem, due to which clients began to refuse risky actions on trading platforms.
The average deposit of clients with cryptoassets in the fourth quarter, states the Silvergate team, amounted to $7.3 billion. This is almost two times lower than in the previous quarter – $12 billion. Now the company is preparing for a long period of reducing deposits – it is trying to optimize costs and review its products unprofitable.
According to Silvergate CEO Alan Lane, the team continues to believe in the digital asset industry and is committed to maintaining a highly liquid balance sheet with strong capital.
At the end of last year, a lawsuit was filed against Silvergate Capital Corporation, Silvergate Bank, and Alan Lane personally in the Southern District of California, alleging direct participation in the fraud of representatives of the collapsed FTX crypto exchange.
Source: Bits
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