Silvergate Capital Files For Bankruptcy Amid Financial Struggles

According to Foresight News, Silvergate Capital Corporation, the parent company of crypto-friendly bank Silvergate, has filed for bankruptcy in the Delaware Bankruptcy Court. The filing reveals that the company's assets range between $10 billion and $50 billion, while its liabilities are between $100,000 and $50 million. The bankruptcy application also includes Silvergate's subsidiaries, Silvergate Liquidation Corporation and Spring Valley Lots LLC. The company's restructuring plan proposes full repayment of certain debts, including administrative expenses, taxes, secured loans, and professional fees. Claims related to common stock and securities litigation will be completely canceled, and preferred shareholders are expected to receive partial payments based on their shares. Previously, Foresight News reported that Silvergate Capital Corp. had agreed to pay $63 million to settle with the U.S. Securities and Exchange Commission (SEC), the Federal Reserve, and the California Department of Financial Protection and Innovation (DFPI).