Silvergate Capital said on Thursday it would significantly reduce its headcount, leaving the firm with a skeleton crew to manage the liquidation of its crypto-friendly bank.

The cuts involve pink-slipping 230 employees tomorrow, followed by additional layoffs later in the year. In a filing with the Securities and Exchange Commission (SEC), the company said it would have just 80 employees by the end of the week.

The company’s California-based lender, Silvergate Bank, shuttered in March. The lender catered to many crypto-native clients like Coinbase, Circle, Paxos, and Gemini. It also operated an instant settlement platform, SEN, used heavily by the bank’s institutional clients.

Silvergate’s remaining employees will help preserve value associated with the company’s remaining assets, respond to regulatory inquiries, and address investigations into the bank and its parent company, the company said.

In its final fiscal quarter of 2022, Silvergate disclosed its clients pulled $14 billion from the lender following the collapse of Sam Bankman-Fried’s crypto empire, FTX. To weather the flurry of withdrawals, it thinned its portfolio of debt securities and took on sizable loans from a government-sponsored bank, sparking criticism from some lawmakers.

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Author: André Beganski

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