The collapse of crypto exchange FTX sparked a run on Silvergate Capital Corp., forcing the bank to sell assets at a steep loss to cover some $8.1 billion in withdrawals.

Crypto-related deposits plunged 68% in the fourth quarter, the bank said in an early release of some quarterly results. To satisfy the withdrawals, Silvergate liquidated debt it was holding on its balance sheet. The $718 million it lost selling the debt far exceeds the bank’s total profits since at least 2013.

Silvergate caters to companies in the crypto business, taking their deposits and operating a network that links investors to crypto exchanges. FTX and other companies controlled by its founder, Sam Bankman-Fried, accounted for about $1 billion of the bank’s deposits.

Their November collapse rattled the crypto market and sent Silvergate’s stock down sharply.

(By David Benoit)

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