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.

Silvergate said that additional reductions would also take place on June 30, Aug. 30, and Nov. 30 of this year but did not state how many staff will be cut on those dates.

Silvergate 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 in total.

Silvergate announced that it would halt operations and undergo liquidation on March 8. The company experienced a bank run shortly before that when it submitted an SEC filing disclosing apparent difficulties. Specifically, Silvergate said that 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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