According to a May 11 SEC filing, Silvergate Bank will significantly reduce its staff headcount as it winds down operations.
Silvergate Bank staff firing
On May 12, the failed crypto-friendly bank will lay off approximately 230 employees, leaving the firm with only 80 officers and employees.
The remaining employees will continue to pursue the liquidation of the company, will cooperate with inquiries and investigations, and will make every effort to preserve the remaining value of the company’s assets.
Additional layoffs would occur on June 30, August 30, and November 30 of this year, according to the filing, but it was not specified how many employees would be laid off on those dates. Severance and retention bonus payments will cost the bank $10.7 million.
Silvergate will also spend $2.8 million on employee benefits and job placements, bringing the total cost of the reduction to around $13.6 million.
On March 8, Silvergate Bank announced that it would cease operations and be liquidated. It had a bank run shortly before that when it filed an SEC filing disclosing apparent problems.
Specifically, the bank stated that it would be unable to file its 10-K report — and the company reiterated this in today’s press release.
Many cryptocurrency companies used Silvergate for specific transactions, and others had financial ties to the company.
Several companies, however, distanced themselves from Silvergate prior to or during the company’s collapse in March.
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