Silvergate begins NYSE delisting process as it readies to cut 230 staff

The parent company of the defunct Silvergate Bank disclosed significant staff cuts and the delisting of its securities in an SEC filing.

The parent company of the collapsed Silvergate Bank will be delisted from the New York Stock Exchange, and 230 of its staff will be let go, Silvergate Capital has disclosed.

In a May 11 filing to the United States Securities and Exchange Commission, Silvergate Capital said 230 staff will be “separated” starting May 12. The NYSE also suspended trading in its stock, with delisting to commence “shortly.”

After the staff cut, “approximately 80 officers and employees” will be left behind to continue Silvergate Bank’s liquidation process.

More cuts are on the horizon. At least three more headcount cuts are slated, for June 30, Aug. 30 and Nov. 30 “or later,” the filing states.

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

No more financial updates

In a separate May 11 SEC filing, Silvergate said it’s unable to file legally required financial reports for the 2022 fiscal year and the first quarter of 2023 and “does not expect to be able” to file any similar reports in the future.

The firm cited “challenges” due to “continuous developments relating to the regulatory and other inquiries and investigations that are pending,” and liabilities from legal action and the bank’s liquidation process.

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

— Bank Reg Blog (@bank_reg) May 11, 2023

Silvergate determined it’s in the “best interests” of stakeholders to “minimize costs and expenses” to preserve value. Some of the staff to be cut include those that are “critical” in preparing these filings, the firm added.

Related: GAO cites exposure to digital assets in exploring collapse of Signature Bank

On March 8, Silvergate Capital first announced it would voluntarily liquidate Silvergate Bank.

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.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom