Silvergate Bank, which currently faces a class-action lawsuit over its FTX and Alameda Research dealings, has announced a $1 billion net loss attributable to common shareholders in the fourth quarter of 2022.
In a report published by the United States Securities and Exchange Commission, the digital asset bank highlighted that it saw significant outflows of deposits in the last quarter of 2022 and made actions to maintain cash liquidity, including wholesale funding and selling debt securities.
The company also highlighted a transformational shift in the digital asset space. It noted that a crisis of confidence throughout the ecosystem led customers to take a risk off position on crypto trading platforms.
According to the report, the average digital asset customer deposits in the fourth quarter of 2022 was $7.3 billion. This is significantly lower compared to the third quarter of 2022 where deposits were around $12 billion.
Despite the losses, the company noted that it is taking action to prepare for a sustained period of lower deposits. According to the announcement, Silvergate is managing its expense base and evaluating its product portfolio and customer relationships.
