Silvergate Capital files for Chapter 11 bankruptcy protection in Delaware

Silvergate Capital, the parent company of crypto-friendly bank Silvergate, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court of Delaware, with assets estimated at between $100 million and $500 million and liabilities between $10 million and $50 million. The bankruptcy stems from the severe damage to the reputation of its subsidiary Silvergate Bank after liquidity problems and the collapse of crypto exchage FTX. Silvergate previously had close ties with the crypto industry, but the company faced major challenges due to regulatory scrutiny sparked by the FTX scandal. The U.S. Securities and Exchange Commission (SEC) accused Silvergate of assisting FTX in fraudulent transactions and imposed heavy fines and restraining orders on its former executives. Silvergate has agreed to pay $63 million to settle charges with the SEC, the Federal Reserve and California regulators.