Silvergate Capital Corporation, a Maryland bank holding company formed in 1986 and headquartered in La Jolla, California, filed Chapter 11 on September 17, 2024 in Delaware to complete a planned wind-down following a severe deposit run. The bank, which had pivoted to specialize in cryptocurrency banking services and operated the Silvergate Exchange Network, experienced a deposit decline from $12.005 billion (September 2022) to $3.852 billion (December 2022) after the mid-2022 crypto market collapse (Three Arrows Capital, Voyager, Celsius) and the November 2022 FTX failure. The crisis forced $948.7 million in securities losses in 2022. The bank ceased accepting deposits in March 2023, entered voluntary liquidation, and relinquished its charter on July 8, 2024. The Chapter 11 filing followed regulatory settlements totaling $113 million and a cease-and-desist order. The plan creates a liquidation trust to distribute approximately $163.1 million in cash and pursue third-party claims, including FTX litigation. Preferred stockholders receive first-priority liquidation trust interests but are not expected to recover their full $200 million liquidation preference. Subordinated debentures ($18.3 million) are expected to be paid in full. Common stock is reinstated for continued existence under a settlement but no immediate cash recovery is expected. The confirmation order was entered on November 13, 2025.
