Silvergate and the Federal Home Loan Bank of San Francisco

When FTX was exposed as being insolvent, crypto investors were considerably less willing to leave their cash on exchanges. By the end of December, non-interest bearing deposits at Silvergate fell from $13.2 billion to just $3.9 billion. With their money all tied up in bonds or lent out, Silvergate had to come up with around $9 billion to pay out these withdrawals. Their accounts showed that they had sold half of their bonds and had controversially borrowed $4.3 billion from the Federal Home Loan Bank of San Francisco.