Silvergate Capital has filed for bankruptcy protection in the U.S. Bankruptcy Court for Delaware

ChainCatcher news, according to Financefeeds, the parent company of crypto-friendly bank Silvergate, Silvergate Capital, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for Delaware. The bankruptcy filing shows that the company's assets are between $100 million and $500 million, with liabilities between $10 million and $50 million. In March 2023, Silvergate Capital announced it would voluntarily liquidate its subsidiary Silvergate Bank, citing challenges in the banking industry due to rising interest rates and regulatory scrutiny following the bankruptcy of crypto exchange FTX in November 2022. Silvergate Bank was known for its close ties to the crypto industry, and its reputation and confidence among clients plummeted after the FTX collapse. 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), agreeing to pay $63 million. The Federal Reserve stated that it has ended its enforcement action against Silvergate Capital after Silvergate Bank completed its liquidation plan, repaid deposits, and ceased banking operations.

Previous news, the U.S. SEC has sued Silvergate Capital in a federal court, accusing it of securities fraud. The SEC stated that Silvergate misled investors about its banking secrecy policies, anti-money laundering compliance program, and poor financial condition following the collapse of FTX in 2022.