# Silvergate Bank

By [Wate](https://paragraph.com/@wate) · 2024-10-31

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Silvergate Bank, originally a small lender focused on real estate, became the top U.S. crypto bank by 2019, serving over 1,600 crypto-related businesses, including exchanges and major mining firms. Sam Bankman-Fried, CEO of FTX, even stated that the crypto market could be defined as "before Silvergate and after Silvergate." However, after FTX collapsed, a major client of Silvergate, the bank's stock plummeted by over 80%.

To cut costs, Silvergate laid off 40% of its staff and halted mortgage lending. Additionally, in March, the bank delayed its annual report to the SEC, revealing that it faced significant capital losses. Concerns about Silvergate’s stability have grown, leading to further declines in its stock and affecting other Bitcoin-related stocks.

Investors and influencers in the crypto space worry about the potential domino effect of Silvergate’s failure, drawing comparisons to previous financial collapses like Lehman Brothers and Evergrande. With FTX’s downfall already triggering disruptions, Silvergate’s troubles could be the latest setback for the crypto market, potentially worsening the impact across various crypto firms and stablecoins that rely on it.

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*Originally published on [Wate](https://paragraph.com/@wate/silvergate-bank)*