Crypto Withdrawals of $8bn Hit Silvergate, a US bank

Silvergate, the US bank that offers cryptocurrency services, has reported that its clients have withdrawn over $8 billion (£6.7 billion) of their cryptocurrency-linked deposits over the past several weeks. 

In the final three months of 2022, roughly one-third of the bank’s customers pulled their deposits from the bank. The bank sold assets worth $5.2 billion to cover the cost and maintain liquidity. 

According to three US regulators, issuance or holding crypto would conflict with safe and sound banking practices as it would be “highly likely that such practices would be compromised.” 

Listed on the New York Stock Exchange, Silvergate is a bank regulated by the New York Stock Exchange and a part of the financial sector. A few businesses within this sector offer cryptocurrency services, and this business is one of the very few. Before the November bankruptcy filing of FTX, the crypto exchange was once valued at $32 billion. Withdrawals followed the collapse of the FTX exchange. 

A former FTX boss has pleaded not guilty to charges that he defrauded customers and investors as part of his role at the company. Approximately one million credits may have been affected by bankruptcy, according to prosecutors. 

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