Updated at 10:10 am EST

Silvergate Capital (SI) – Get No cost Report shares plunged lower Thursday just after it stated the collapse of FTX direct to a hurry of withdrawals at the crypto lending professional amid what it referred to as a “disaster of self-assurance throughout the electronic asset ecosystem.”

Silvergate stated in a constrained update to its fourth quarter earnings that deposits from digital asset buyers fell $8.1 billion above the 3 months ended in December, compared to third quarter amounts, to all around $3.8 billion, adhering to the FTX Chapter 11 personal bankruptcy filing in early November.

The hurry to withdraw led Silvergate to offer $5.2 billion of its digital belongings at a $718 million reduction to their e book price in get to maintain liquidity. The loan provider also claimed it will slash all-around 40% of its team, having a cost of about $4 million along the way, in buy to reduce expenses.

“In reaction to the immediate variations in the digital asset marketplace during the fourth quarter, we took commensurate steps to be certain that we were being protecting funds liquidity in order to satisfy possible deposit outflows, and we presently manage a hard cash situation in excess of our electronic asset similar deposits,” said CEO Alan Lane.

Silvergate shares had been marked 47% lower in early Thursday buying and selling promptly adhering to the group’s fourth quarter update to modify arms at $11.83 each and every, a move that would lop much more than $320 million from its market place worth.

FTX, at one time the 2nd premier crypto platform in the environment with a sector value of about $32 billion, filed for Chapter 11 individual bankruptcy safety in early November amid a liquidity crisis brought on by the unlawful use of client deposits to back dangerous trades produced by the group’s wholly owned hedge fund recognized as Alameda Exploration.