US bank forced to fire 40pc of staff as FTX fallout deepens

Crypto-focused bank Silvergate is to cut 40pc of its staff as the crisis in the digital asset sector sparked by the collapse of Sam Bankman-Fried’s empire rumbles on.

The meltdown in the sector, triggered by the bankruptcy of crypto exchange FTX in November, promoted a $8.1bn (£6.8bn) run on deposits held by Silvergate in the final quarter of last year.

It forced the California-based bank to sell assets at a loss of $718m (£610m), according to a statement today.

Shares in the company have plunged 47pc to below $12 in New York.

It comes as regulators step up their scrutiny of the digital assets sector in the wake of the collapse of Sam Bankman-Fried’s FTX.

The US Securities and Exchange Commission has pushed back on crypto exchange Binance US’s plan to buy bankrupt crypto lender Voyager Digital in a deal valued at about $1 billion, according to a bankruptcy court filing. 

Meanwhile, former Celsius chief executive Alex Mashinsky, whose once high-flying crypto lender went bankrupt last year, has been sued for fraud by the New York attorney general.