Silvergate Capital, the parent company of collapsed Silvergate Bank, will be delisted from the New York Stock Exchange and its 230 employees will be laid off, Silvergate Capital has revealed.
In a May 11 filing with the Securities and Exchange Commission, Silvergate Capital said 230 employees would "leave their jobs" beginning May 12. The New York Stock Exchange also suspended trading in its shares and will begin delisting "soon". The job cuts will leave "around 80 managers and staff" to continue the process of liquidating Silvergate Bank. More cuts are coming. At least three more layoffs are planned for June 30, August 30 and November 30 "or later," the document said.
Silvergate estimates the cost of layoffs will be about $13.6 million, including severity, retention and bonuses, and the cost of job placement programs.
No more financial updates
In a separate filing with the SEC on May 11, Silvergate said it was unable to file the legally required financial reports for fiscal 2022 and the first quarter of 2023, and "anticipates not being able to" file any similar reports in the future.
The company cited "challenges" as a result of "continuing developments related to regulatory and other pending inquiries and investigations" as well as responsibilities arising from legal proceedings and the bank's liquidation process. Silvergate determined it was in the "best interest" of stakeholders to "minimize cost and expenditure" to preserve value. Some of the workers who will be laid off include those who were "vital" in preparing the documents, the company added. On March 8, Silvergate Capital announced for the first time that it would voluntarily liquidate Silvergate Bank.
A slew of cryptocurrency firms including Gemini, Coinbase, Galaxy Digital and BitStamp severed ties with the bank days ago as it faces a Department of Justice investigation in connection with the collapse of FTX.
