Silvergate Bank, which presently deals with a class-action claim over its FTX and Alameda Research transactions, has revealed a $1 billion net loss attributable to common shareholders in the 4th quarter of 2022.

In a report published by the United States Securities and Exchange Commission (SEC), the digital possession bank highlighted that it saw substantial outflows of deposits in the last quarter of 2022 and made actions to maintain cash liquidity, including wholesale financing and offering debt securities.

The business also highlighted a “transformational shift” in the digital possession area. It kept in mind that a crisis of self-confidence throughout the ecosystem led clients to take a “run the risk of off” position on crypto trading platforms.

According to the report, the average digital asset consumer deposits in the 4th quarter of 2022 was $7.3 billion. This is considerably lower compared to the 3rd quarter of 2022 where deposits were around $12 billion.

Regardless of the losses, the company kept in mind that it is acting to prepare for a continual period of lower deposits. According to the announcement, Silvergate is handling its expense base and evaluating its product portfolio and customer relationships.

Amidst the difficulties, Silvergate CEO Alan Lane highlighted that the business still thinks in the digital asset industry and stays “committed to preserving a highly liquid balance sheet with a strong capital position.”

Related: Silvergate struck with another class-action suit, this time for securities law violations

On Jan. 5, the company laid off around 200 staff members, which represented roughly 40% of its labor force, as part of its efforts to survive. In addition, the company likewise shelved plans to introduce a digital currency task, writing off $200 million used to buy technology developed by Facebook.

Responding to the scenario, ranking company Moody’s Investors Service reduced its ranking of Silvergate Bank. The ranking went from Baa2, which was “lower-medium grade,” to Ba1, which is thought about “scrap.” Apart from this, Moody’s likewise highlighted that the outlook for both Silvergate Capital and its bank is unfavorable.