Silvergate Sinks by Record on Deposit Run, Staff Layoffs

Silvergate Bank is facing a crisis due to its involvement with FTX, leading to a significant drop in its stock value and massive withdrawals of digital asset deposits. This has forced the bank to sell assets and reduce its workforce. Additionally, other crypto entities like Genesis Global Trading and Celsius Network are also experiencing challenges, with layoffs and legal actions. The situation has prompted increased scrutiny from lawmakers and a general crisis of confidence in the crypto sector.

What was the primary reason for Silvergate's financial crisis?

• A sudden increase in interest rates

• A merger with another bank

• Its involvement with FTX and Alameda

• A cyber attack on its systems

How did Silvergate respond to the massive customer withdrawals?

• By launching a new crypto product

• By selling off assets and reducing staff

• By increasing interest rates

• By acquiring another bank

Why are lawmakers scrutinizing Silvergate?

• Due to a recent cyber attack

• Due to its affiliation with FTX

• Because of its high interest rates

• For its involvement in a merger

What action did Genesis Global Trading take in response to the crisis?

• Merged with another company

• Laid off about 30% of its staff

• Launched a new trading platform

• Increased its investment in crypto

What legal action was taken against the former CEO of Celsius Network?

• He was sued for defrauding investors

• He was charged with insider trading

• He was accused of money laundering

• He was fined for regulatory violations