🚨 Silvergate Capital Files for Bankruptcy Amid Crypto Collapse 🚨

#Silvergate Capital, parent company of Silvergate Bank, filed for bankruptcy on September 18, 2024, in Wilmington, Delaware, after closing in March 2023.

The filing aims to complete liquidation and settle debts, with no compensation for common shareholders.

Silvergate's deposits soared from $1.8 billion in 2019 to $14.3 billion by 2021, fueled by the #cryptocurrency boom.

However, the 2022 market downturn and #FTX exchange collapse caused over $8 billion in withdrawals.

In 2023, the bank faced regulatory investigations from the Federal Reserve, California’s bank regulator, and the SEC, resulting in a $63 million settlement over anti-money laundering failures.

The remaining $163 million in cash will be used to pay creditors, but common shareholders are unlikely to receive any compensation.