Silvergate Capital files for Chapter 11 bankruptcy in Delaware state court

Silvergate Bank's parent company, Silvergate Capital Corporation, has filed for Chapter 11 bankruptcy protection in Delaware District Court.
In documents filed on the 17th, the company said it had assets between $100 million and $500 million and liabilities between $10 million and $500 million.
The bankruptcy filing also included two of Silvergate's affiliates, Silvergate Liquidation Corporation and
and Spring Valley Lots LLC. The restructuring plan included in Silvergate's Chapter 11 bankruptcy filing includes the payment of senior debt obligations such as management fees, taxes, secured loans and professional fees.
Silvergate is proposing to fully repay the claims in the Common Stock and certain claims related to the Securities Litigation are expected to be fully discharged. Inter-affiliated debts within Silvergate are expected to be collected.
The bankruptcy filing comes 18 months after the crypto-friendly bank suspended operations due to liquidity issues.
In March 2023, Silvergate's parent company announced that it would liquidate its subsidiary cryptocurrency division, Silvergate
At the time, the bank announced that it would voluntarily liquidate the bank, citing "rising interest rates causing a financial system crisis."
"The collapse was due to the company's difficulties in managing its cryptocurrency and regulatory pressure on crypto companies following the dramatic collapse of FTX in November 2022," he said.