ChainCatcher news, according to Financefeeds, Silvergate Capital, the parent company of crypto-friendly bank Silvergate, has filed for Chapter 11 bankruptcy protection in the Delaware Bankruptcy Court. The bankruptcy filing shows that the company has assets between $100 million and $500 million and liabilities between $10 million and $50 million. In March 2023, Silvergate Capital announced that it would voluntarily liquidate its subsidiary Silvergate Bank, citing challenges in the banking industry due to rising interest rates and regulatory scrutiny after the crypto exchage FTX went bankrupt in November 2022. Silvergate Bank is known for its close ties with the crypto industry, and its reputation and confidence among customers plummeted after the collapse of FTX. In July of this year, Silvergate Capital reached a settlement with the U.S. SEC, the Federal Reserve, and the California Department of Financial Protection and Innovation (DFPI) and agreed to pay $63 million. The Federal Reserve said it had ended its enforcement action against Silvergate Capital after Silvergate Bank completed its liquidation plan, repaid deposits, and ceased banking operations.
Earlier news , the U.S. SEC sued Silvergate Capital in a federal court, accusing it of securities fraud. The SEC stated that after the collapse of FTX in 2022, Silvergate misled investors about its bank confidentiality system, anti-money laundering compliance program, and poor financial condition.
