The collapse of crypto exchange FTX sparked a run on Sivergate Capital Corp., forcing the bank to sell assets at a steep loss to cover some $8.1 billion in withdrawals.
Crypto-related deposits plunged 68% in the fourth quarter, the bank said in an early release of some quarterly results. To satisfy the withdrawals, Silvergate liquidated debt it was holding on its balance sheet. The $718 million it lost selling the debt far exceeds the bank’s total profits since at least 2013.