Silvergate Capital Corporation Files for Bankruptcy

According to a report by FinanceFeeds, Silvergate Capital Corporation, the parent company of crypto-friendly bank Silvergate, has filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. The bankruptcy filing indicates that the company's assets are between $10 billion and $50 billion, while its liabilities are between $100 million and $500 million. The filing also includes Silvergate's subsidiary, Silvergate Liquidation Corporation, and Spring Valley Lots LLC.

The company's proposed restructuring plan proposes full repayment of certain debts, including administrative expenses, taxes, secured loans, and professional fees. Claims related to common stock and securities lawsuits will be completely cancelled, and preferred shareholders are expected to receive partial payments based on their shares.

Previously, Foresight News reported that Silvergate Capital Corp., the parent company of Silvergate Bank, 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).