Silvergate reports sharp drop in deposits in wake of FTX collapse

US bank holding company Silvergate Capital says its digital asset-related deposits fell almost 70 percent in the three months through the end of December. The drop came after the collapse of cryptocurrency exchange FTX Trading in November.

The company said on Thursday its total deposits from digital asset customers declined to 3.8 billion dollars at the end of the fourth quarter of 2022. That was down 8.1 billion dollars from the end of the previous quarter.

Silvergate's subsidiary bank focused on crypto businesses and had deals with FTX. The firm's failure apparently prompted Silvergate customers to withdraw their deposits to secure cash.

Silvergate says it is reducing its workforce in response to the surge in withdrawals. It has also sold debt securities.