BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home BUSINESS

Silvergate Records $1 Billion Net Loss In The Q4 Of 2022

by BlockNews Team
January 18, 2023
in BUSINESS, FINANCE, INVESTING, MEDIA
Reading Time: 4 mins read
A A
1
SHARES
21
VIEWS
Share on XShare in TelegramShare on Reddit
  • Silvergate announced a net loss of $1 billion in the fourth quarter of 2022.
  • The company cited the crypto winter as the reason for the deficit of customer deposits.
  • The company has been on a rollercoaster of tragic events since the crash of FTX and its involvement with the scandalous company.

Silvergate Capital Corporation and its subsidiary, Silvergate Bank, announced the financial result for the fourth quarter of 2022, revealing a net loss of $1 billion due to the deficit of deposits by its digital asset customers and the crippling bear market.

Silvergate’s commentary report shows that the company witnessed a considerable outflow of deposits in the fourth quarter of 2022 and had to make decisions to preserve its cash liquidity due to the “transformational shift” that the crypto industry experienced.

“The company initially utilized wholesale funding and sold debt securities to accommodate sustained lower deposit levels and maintain its highly liquid balance sheet,” Silvergate revealed.

Although Silvergate is currently facing a class-suit action due to its involvement with FTX and its affiliated company, Alameda Research, the company recorded a low yield in its digital asset dealings, claiming that its average customer deposits in the Q4 of 2022 were $7.1 billion compared to its $12 billion in the Q3 of 2022.

The unbalanced dynamic of the recent crypto industry evoked a “crisis of confidence” across the ecosystem. It made many crypto firms move to a risk-off position on all crypto trading platforms. The company expects to record lower deposits and is preparing to make sure that the business remains active by taking specific measures such as examining its product portfolio, managing its expense base, and customer relationships moving forward.

“While we are taking decisive actions to navigate the current environment, our mission remains the same,” CEO of Silvergate, Alan Lane, commented on the recent low impact of the crypto industry in the company.

In its press release, Silvergate listed its earnings in the fourth quarter and compared them with previous results to bolster its loss in the crypto winter. The company stated that the net loss attributable to its common shareholders was $1 billion, or $33.16 loss per common share, in comparison to its net income of $40.6 million, or $1.28 per diluted share, for the third quarter of 2022 while its net income for the fourth quarter of 2021 was $18.4 million or $0.64 per diluted share.

Silvergate faces class-action suits.

Silvergate Capital Corporation and its subsidiaries have been under fire for their involvement with Alameda Research, as the company was recently hit with another class-action suit.

In December 2022, a suit was filed against Silvergate, claiming the company had played a crucial role in assisting FTX with its fraudulent acts and for breaching fiduciary responsibility.

The plaintiff, Joewy Gonzalez, and the others affected in the FTX investment fraud accused Silvergate of maintaining the accounts of FTX and Alameda Research and therefore had a hand in blending and lending out customer funds.

The second class-action suit filed against the publicly traded company was for its violation of securities law. The plaintiff representing “Silvergate securities” purchasers blamed the company for not detecting the $425 million transferred to South American money launderers. Marcus Aurelius Research shared this news on Twitter in November.

“I recently subpoenaed Silvergate bank records reveal $425 million in transfers from $I crypto bank accounts to South American money launderers,” Aurelius wrote.

Identified as the Defendants in the court filing, the Plaintiffs accused Silvergate of making false and misleading statements. They could not reveal material contrary to the company’s prospects, business, and operations.

Silvergate’s dilemma since the FTX debacle

The publicly traded company has been on a rollercoaster of tragic incidents since the crash of FTX. According to a report by The Wall Street Journal, Silvergate Bank liquidated debt it held to its balance sheet to keep up with withdrawals, therefore losing $718 million.

Due to this loss, Silvergate had to lay off 40% of its employees and cancel its plans to launch its digital currency. The company wrote off $196 million to acquire the technology and assets of the Facebook Diem project.

Recent times have been unfavorable for Silvergate and its subsidiaries, as the company has only published unfortunate news since Sam Bankman-Fried’s FTX scandal in November 2022. Posting the company’s $1 billion net loss in the fourth quarter of 2022 proves that it is under heat from the bear market and the consequences of dealing with FTX and its affiliated company, Alameda Research.

Conclusion

Silvergate Capital Corporation released a report detailing its net loss of $1 billion due to the bearish crypto market and a downturn in customer deposits. The company is under backlash from legal authorities as it faces class action suits.

Tags: Businesscryptodigital assetsSilvergate
TweetShareShare
Previous Post

Ukraine’s Vice Prime Minister Shares Vision of Making the Country a Leading Jurisdiction for Crypto

Next Post

U.K. Court Sentences 4 Men To 15 Years In Prison For $26 Million Crypto Fraud

DON'T MISS THESE! HOT OFF THE PRESS

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling
CRYPTO

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

July 1, 2025
Pi Coin in July 2025: Rebound Brewing or Another Breakdown?
CRYPTO

Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

July 1, 2025
VeChain Struggles to Regain Steam After December Peak
CRYPTO

VeChain Struggles to Regain Steam After December Peak

July 1, 2025
Toncoin and Telegram: The Sleeping Giant of 2025?
BITCOIN

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL
BITCOIN

Crypto Supply Shock: Bitwise Predicts Bullish Runs for BTC, But Shows Doubt With ETH and SOL

July 1, 2025
SEC Plans Shortcut for Crypto ETFs With New Listing Rules
CRYPTO

SEC Plans Shortcut for Crypto ETFs With New Listing Rules

July 1, 2025
Load More

Related News

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

Anime 2.0 Revealed: Studio Azuki and the New Wave of Anime Storytelling

July 1, 2025
Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

Pi Coin in July 2025: Rebound Brewing or Another Breakdown?

July 1, 2025
VeChain Struggles to Regain Steam After December Peak

VeChain Struggles to Regain Steam After December Peak

July 1, 2025
Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

Shiba Inu’s Golden Cross Sparks $110M Whale Surge as Pippen Joins the Party

July 1, 2025
Toncoin and Telegram: The Sleeping Giant of 2025?

Toncoin and Telegram: The Sleeping Giant of 2025?

July 1, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.