According to BlockBeats, on September 19, Silvergate Capital, the parent company of crypto-friendly bank Silvergate, filed for Chapter 11 bankruptcy protection in the Delaware Bankruptcy Court, with assets estimated to be between $100 million and $500 million and liabilities between $10 million and $50 million. The bankruptcy stems from the serious damage to the reputation of its subsidiary Silvergate Bank after liquidity problems and the collapse of the crypto exchange FTX.
Silvergate previously had close ties to the crypto industry, but the company faced major challenges due to regulatory scrutiny sparked by the FTX scandal. The U.S. Securities and Exchange Commission (SEC) accused Silvergate of assisting FTX in fraudulent trading and imposed heavy fines and restraining orders on its former executives. Silvergate has agreed to pay $63 million to settle charges with the SEC, the Federal Reserve, and California regulators.
