{"id":18574,"date":"2023-05-12T01:56:06","date_gmt":"2023-05-12T01:56:06","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/silvergate-begins-nyse-delisting-process-as-it-readies-to-cut-230-staff\/"},"modified":"2023-05-12T01:56:08","modified_gmt":"2023-05-12T01:56:08","slug":"silvergate-begins-nyse-delisting-process-as-it-readies-to-cut-230-staff","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/silvergate-begins-nyse-delisting-process-as-it-readies-to-cut-230-staff\/","title":{"rendered":"Silvergate begins NYSE delisting process as it readies to cut 230 staff"},"content":{"rendered":"
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The parent company of the collapsed Silvergate Bank will be delisted from the New York Stock Exchange (NYSE) and 230 staff will be let go, Silvergate Capital has disclosed.<\/p>\n

In a May 11 filing to the Securities and Exchange Commission (SEC), Silvergate Capital said 230 staff will be \u201cseparated\u201d starting May 12. The NYSE also suspended trading in its stock with delisting to commence \u201cshortly.\u201d<\/p>\n

A year-to-date chart of Silvergate Capital\u2019s share price shows a nearly 93% price drop since the start of 2023. Source: <\/em>Google Finance<\/em><\/figcaption><\/figure>\n

After the staff cut \u201capproximately 80 officers and employees\u201d will be left behind to continue Silvergate Bank\u2019s liquidation process.<\/p>\n

More cuts are on the horizon. At least three more headcount cuts are slated for June 30, Aug. 30 and Nov. 30 \u201cor later\u201d the filing states.<\/p>\n

Silvergate estimated staff drawdown costs would land around $13.6 million with expenses on severance, retention and bonus pays along with job placement programs.<\/p>\n

No more financial updates<\/h3>\n

In a separate May 11 SEC filing, Silvergate said it\u2019s unable to file legally required financial reports for the 2022 fiscal year and the first quarter of 2023 and \u201cdoes not expect to be able\u201d to file any similar reports in the future.<\/p>\n

The firm cited \u201cchallenges\u201d due to \u201ccontinuous developments relating to the regulatory and other inquiries and investigations that are pending,\u201d and liabilities from legal action and the bank\u2019s liquidation process. <\/p>\n

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Silvergate says it is done filing 10-Ks, 10-Qs and proxy statements, in large part because of “the continuous developments relating to the regulatory and other inquiries and investigations that are pending with respect to the Company and the Bank” https:\/\/t.co\/1EpkRKAixt pic.twitter.com\/i1D6S1daGP<\/a><\/p>\n

\u2014 Bank Reg Blog (@bank_reg) May 11, 2023<\/a><\/p><\/blockquote>\n

Silvergate determined it\u2019s in the \u201cbest interests\u201d of stakeholders to \u201cminimize costs and expenses\u201d to preserve value. Some of the staff to be cut include those that are \u201ccritical\u201d in preparing these filings, the firm added.<\/p>\n

Related: <\/em><\/strong>GAO cites exposure to digital assets in exploring collapse of Signature Bank<\/em><\/strong><\/p>\n

On March 8, Silvergate Capital first announced it would voluntarily liquidate Silvergate Bank.<\/p>\n

Days earlier, a line-up of crypto firms including Gemini, Coinbase, Galaxy Digital and BitStamp severed ties with the bank as it faced a Justice Department investigation over alleged ties to the collapse of FTX. <\/p>\n

Magazine:<\/em><\/strong> <\/u><\/em><\/strong>Unstablecoins: Depegging, bank runs and other risks loom<\/em><\/strong><\/p>\n<\/div>\n