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Silvergate: This is how a cryptocurrency hack hit a bank for the first time

Silvergate: This is how a cryptocurrency hack hit a bank for the first time

The chaos continues Digital currencies. For the first time, the collapse of a traditional bank. On Thursday, in fact, California acts Silverjet collapsed before 47% After announcing the fourth quarter results. In the credit institution’s documents, we read about a 68% drop in cryptocurrency deposits, the total value of which has shifted from 11.9 billion in September, to 3.8 billion now. Customers withdraw their assets from the bank. And they did just that after the collapse of the largest cryptocurrency exchange: FTX. advertise in bankruptcy by its thirty-year-old founder Sam Bankman Friedthat was Arrested for fraud. He was a bankrupt Silvergate client Alameda Research, whose uncertain financial situation contributed to the collapse of Ftx. Last month, US Senator Elizabeth WarrenOften siding with Banks, she expressed her doubts about Silvergate. Warren had directly grilled the lender about its alleged role in facilitating the transfer of funds from FTX clients to Alameda.

“Crisis of Confidence in the Ecosystem”

The collapse of Ftx raised questions about the stability of digital currencies, and this is exactly what Silvergate was talking about, which pointed to a “crisis of confidence in the entire ecosystem,” according to reports. CNBC. At the end of December, they were 150 million Dollars deposited in the bank that belong to the customers who ordered Bankruptcy protection. To obtain liquidity in these difficult times, the Bank has Sold $5.2 billion worth of debt securities pThe losses amounted to $718 million, noting that the liquidity announced by the Corporation in December amounted to $4.6 billion. In addition, Silvergate revealed it 200 employees will be left at home. or 40% of its workforce. Silvergate was a small bank until 2019, when it jumped into cryptocurrency and went public. Now his thud is frightening, because it seems the infection has set in. Not only cryptocurrencies could be in trouble, but traditional banks as well.

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