Silvergate Bank to cut 230 staff as it winds down

Silvergate Bank will significantly reduce its staff headcount as it winds down operations, according to an SEC filing submitted May 11.

The failed crypto-friendly bank will let go of about 230 employees on May 12, leaving just 80 officers and employees at the firm.

The remaining staff will continue to pursue the company’s liquidation, will cooperate with inquiries and investigations, and will attempt to preserve the remaining value of the company’s assets.

Additional reductions would also take place on June 30, Aug. 30, and Nov. 30 of this year, but it was not stated how many staff would be laid off on those dates, according to the filing.

The bank will spend $10.7 million on severance and retention bonus payments. The company will also spend $2.8 million on employee benefits and job placements, meaning that the reduction will cost Silvergate about $13.6 million.

Silvergate Bank announced it would halt operations and undergo liquidation on March 8. It experienced a bank run shortly before that when it submitted an SEC filing disclosing apparent difficulties. Specifically, the bank said it would be unable to file its 10-K report — and the company reiterated its inability to do so in today’s filing.

Numerous crypto companies used Silvergate for certain transactions, while others had financial exposure to the company. However, several companies distanced themselves from Silvergate prior to or during the company’s March collapse.

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