TechFlow news — Silvergate Capital Corporation, the parent company of cryptocurrency-friendly bank Silvergate Bank, filed for Chapter 11 bankruptcy protection on September 17 in U.S. Bankruptcy Court in Delaware. According to the filing, the company’s assets range between $100 million and $500 million, with liabilities between $10 million and $50 million. The bankruptcy filing includes two subsidiaries of Silvergate: Silvergate Liquidation Corporation and Spring Valley Lots LLC.
Silvergate’s restructuring plan proposes full payment of various debts, including administrative expenses, taxes, and other high-priority claims.
The bankruptcy comes 18 months after the crypto-friendly bank ceased operations due to liquidity issues. In March, Silvergate announced the voluntary liquidation of its subsidiaries and its core banking and crypto business unit, Silvergate Bank.
The company attributed its downfall to challenges within the banking system caused by rising interest rates, as well as increased regulatory scrutiny on cryptocurrency firms following the collapse of FTX.
In July, the U.S. Securities and Exchange Commission (SEC) sued Silvergate Capital, alleging it aided FTX in fraud. That same month, the Federal Reserve dismissed all charges against the bank.
