According to TechFlow, Silvergate Capital Corporation, the parent company of the cryptocurrency-friendly Silvergate Bank, filed for Chapter 11 bankruptcy protection in the Delaware Bankruptcy Court on September 17. According to the filing, the company's assets are between $100 million and $500 million, and its liabilities are between $10 million and $50 million. The bankruptcy filing includes two of Silvergate's subsidiaries, Silvergate Liquidation Corporation and Spring Valley Lots LLC.
Silvergate's restructuring plan proposes paying in full various debts, including management fees, taxes and other high-priority claims.
The bankruptcy filing comes 18 months after the crypto-friendly bank ceased operations due to liquidity issues. In March, Silvergate announced the voluntary liquidation of its subsidiary and crypto business unit, Silvergate Bank.
The company blamed its downfall on challenges in the banking system caused by rising interest rates, as well as regulatory scrutiny of crypto firms following the FTX collapse.
In July, the SEC filed a lawsuit against Silvergate Capital, accusing it of assisting FTX in committing fraud. In the same month, the Federal Reserve dropped all charges against the bank.
