Silvergate Capital, which voluntarily liquidated its bank, filed for Chapter 11 bankruptcy protection in Delaware.
The holding company for the now-defunct Silvergate Bank in La Jolla, Calif., shut down amid the collapse of crypto exchange FTX. The decision to liquidate in March 2023 preceded the high-profile failures of Silicon Valley Bank, Signature Bank and First Republic Bank.
Silvergate Capital, which had no remaining business lines, said it will divide its remaining $163 million in cash among stakeholders. It expects to fully repay bondholders and make payments to those who hold preferred equity; it does not expect to repay those who hold common stock.
In a related filing, Chief Administrative Officer Elaine Hetrick said the company’s bankruptcy was the “culmination of a successful process led by the debtors’ directors and management to repay all of Silvergate Bank’s depositors and wind down its operations as a result of headwinds within the digital asset industry followed by a shift in regulatory approach that made [the bank’s] business model untenable.”