bankruptcy

Evidently, the failure of FTX did not do Silvergate (or Signature, for that matter) any favors. Depositors bailed once they saw that FTX was banking with these banks—and that regulatory scrutiny was (and still is) on the way.

If you recall the movie, It’s a Wonderful Life, there is a scene of a run on the bank. And that is pretty much what happened, albeit with monetary amounts that were several orders of magnitude higher than those in the classic film.