The cryptocurrency-focused bank – Silvergate Capital – reported a net loss of $1 billion for the last quarter of 2022 due to the turmoil reigning in the digital asset sector. It further revealed a net income of $40.6 million, or $1.28 per diluted share, for the third quarter and a net income of $18.4 million ($0.66 per diluted share) for Q4 2021.

The fourth quarter of 2022, with its market decline and company bankruptcies, put a dark stamp on crypto’s legacy. The California-based Silvergate Capital said those dynamics triggered a “crisis of confidence across the ecosystem” and caused financial damage to multiple entities. 

The firm recently laid off nearly half its workforce amid massive client withdrawal requests.