Court documents: Silvergate Bank must return $9.85 million to BlockFi

2023-03-04 09:07:00

Collection

ChainCatcher news, according to a court document from Friday, U.S. Bankruptcy Judge Michael B. Kaplan stated that Silvergate Bank must return the $9.85 million it previously deposited to the crypto lending institution BlockFi.

It is reported that BlockFi filed for bankruptcy protection in November 2022. Shortly after submitting the application, BlockFi began negotiations with Silvergate to release the $10 million held in Silvergate's reserve account. The two parties reached an agreement this Friday, and Silvergate will return most of the funds within two business days.

Previously, Silvergate Capital Corporation stated in a filing with the U.S. Securities and Exchange Commission (SEC) that the company may be "capital deficient" and indicated that it is "reevaluating its business." (source link)

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