Crypto bank Silvergate shares tanked 12% as the ripple effects of FTX's collapse continue. 

Last week, the La Jolla-based crypto bank said its exposure to FTX was limited to deposits, but a recent Goldman Sachs note said analysts could not confirm Silvergate's exposure to FTX and related entities. Short seller Marc Cohodes also questioned the bank's exposure to FTX. 

"Silvergate has no outstanding loans to, nor investments, in FTX, and FTX is not a custodian for Silvergate's bitcoin-collateralized SEN Leverage loans. To be clear, our relationship with FTX is limited to deposits," Silvergate Chief Executive Officer Alan Lane said on Friday, the same day FTX filed for bankruptcy protection.

As of Sept. 30, Silvergate's total deposits from all digital asset customers totaled $11.9 billion, of which FTX represented less than 10%, Lane said. 

On Friday, Goldman updated its estimates to assume greater deposit outflows "with a peak-to-trough decline of roughly $4.4bn, or 32%." It reduced its target multiple given the bank's exposure to a rapidly deteriorating asset class and the potential for significant earnings degradation.

"We would note, however, that we believe the risk of liquidity issues is relatively low at this point," the note said. Goldman also cut its price target to $40 from $64.

Front office reshuffle 

The crypto bank announced two fundamental changes to its leadership team on Nov. 7. Ben Reynolds was promoted to the role of president, and Kate Fraher was appointed the firm's chief risk officer.

It was unclear whether Reynolds and Fraher were replacing executives who had left the firm. Silvergate did not immediately respond to a request for comment from The Block at the time.