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Silvergate Capital has applied for Chapter 11 bankruptcy protection in the United States Bankruptcy Court of Delaware

Silvergate Capital has applied for Chapter 11 bankruptcy protection in the United States Bankruptcy Court of Delaware

Bitget2024/09/18 23:12

The parent company of crypto-friendly bank Silvergate, Silvergate Capital, has applied for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Delaware. Its assets are estimated to be between $100 million and $500 million, with liabilities ranging from $10 million to $50 million. The bankruptcy stems from severe damage to its subsidiary Silvergate Bank's reputation following liquidity issues and the collapse of cryptocurrency exchange FTX. Previously closely associated with the crypto industry, Silvergate now faces significant challenges due to regulatory scrutiny triggered by the FTX scandal. The U.S Securities and Exchange Commission (SEC) accused Silvergate of assisting FTX in fraudulent transactions and imposed hefty fines and restrictions on its former executives. Silvergate has agreed to pay a fine of $63 million to settle charges with SEC, Federal Reserve, and California regulators.

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