Silvergate Shares Skyrocket Amidst FTX Meltdown

Posted on January 30th, 2023 at 12:54 PM
Silvergate Shares Skyrocket Amidst FTX Meltdown

From the Desk of Jim Eccleston at Eccleston Law.

Silvergate Capital share prices increased after the company announced its fourth-quarter results, even after FTX’s collapse, which forced Silvergate to fire staff and sell assets.

Silvergate reported a $1 billion loss for Q4 and further announced that it will eliminate a portion of its digital-asset product portfolio and reevaluate its pipeline of prospective investors. Silvergate anticipates that it will also discontinue offering its crypto custody service, according to Silvergate CEO, Alan Lane. On a conference call with analysts, Lane explained that Silvergate planned to discontinue certain cash management services and crypto custody services as they were deemed to no longer be profitable.

Lane further reported that Silvergate’s $1 billion loss was primarily due to compulsory asset sales as a result of FTX’s collapse. Silvergate’s results illustrated the impact of FTX’s meltdown as total average deposits for digital-asset investors sat at $7.3 billion in Q4, which compares to an average of $12 billion in the preceding quarter.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec, ftx

Return to Archive

TESTIMONIALS

Previous
Next

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

September 5, 2025
Merrill Lynch Advisor Faces FINRA Disciplinary Action for Refusing to Cooperate with Investigation

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary proceedings against former Merrill Lynch broker Ali F. Chehab of Portland, Oregon. According to ThinkAdvisor, FINRA alleges that he refused to cooperate in an investigation into potential misconduct, including unauthorized trading and material misrepresentati...

September 4, 2025
Wells Fargo Ties $2,000 Bonus to Non-Solicitation Clause, Raising Advisor Concerns

Wells Fargo & Co. recently issued a $2,000 bank-wide award to its 215,000 employees, following the Federal Reserve’s June decision to lift its asset growth restrictions.

September 3, 2025
Kansas City Advisory Firms Agree to $25.5 Million Settlement Over No-Poach Allegations

Mariner Wealth Advisors, along with two other Kansas City-area firms, has agreed to a $25.5 million class action settlement over allegations that they illegally agreed not to solicit each other’s advisors.