In an SEC filing, the parent company of the bankrupt Silvergate Bank reported massive layoffs and the delisting of its securities.
Silvergate Capital, the parent company of the defunct Silvergate Bank, has announced that it would be delisted from the New York Stock Exchange and 230 of its employees will be let off.
Silvergate Capital stated in a May 11 statement to the United States Securities and Exchange Commission that 230 employees will be separated beginning May 12. The NYSE also halted trading in its stock, with delisting set to begin soon.
Following the layoffs, about 80 officers and workers will be left to carry on Silvergate Bank’s liquidation procedure.
More layoffs are on the way. According to the petition, at least three further layoffs are planned for June 30, August 30, and November 30 or later.
Silvergate anticipated that staff drawdown costs would be roughly $13.6 million, including severance, retention, and bonus compensation, as well as job placement programmes.
Silvergate stated in a separate SEC filing on May 11 that it is unable to produce legally necessary financial reports for the fiscal year 2022 and the first quarter of 2023, and that it does not anticipate being able to file any comparable reports in the future.
The business highlighted issues related to ongoing regulatory and other inquiries and investigations, as well as obligations from legal action and the bank’s liquidation process.
Silvergate recognised that it is in the best interests of stakeholders to keep expenditures and expenses to a minimum in order to retain value. According to the business, some of the employees who will be laid off are important in drafting these papers.
Silvergate Capital originally announced its intention to liquidate Silvergate Bank on March 8.
Days earlier, a slew of cryptocurrency businesses, including Gemini, Coinbase, Galaxy Digital, and BitStamp, cut connections with the bank as it faced a Justice Department probe into alleged ties to FTX’s demise.