Bankruptcy Judge Orders Silvergate Bank To Release $9.9M To Crypto Lender BlockFi – Silvergate Capital (NYSE:SI)

After filing for bankruptcy protection in November 2022, blockfi approximately $9.9 million has been released from Silvergate Capital Corp. SI by a US Bankruptcy Judge.

The bank initially “re-evaluated its business,” which resulted in several companies ending their association with Silvergate.

A court filing on Friday confirmed that Silvergate is required to return $9,850,000 deposited by BlockFi, The Block reports.

Despite facing its own problems this week, including various litigation and regulatory and other inquiries and investigations, Silvergate agreed to release most of the funds held in Blockfi’s reserve account within two business days.

The judge’s ruling means the bank must fulfill its commitment to the crypto lending firm.

The bank acknowledged on Thursday that it may struggle to remain solvent due to significant losses, sending its share price down nearly 56% in intraday trade and trading down nearly 3% on Friday, before So that it can recover its loss for doing flat business.

Major players in the crypto industry such as coinbase Global Inc coin, Galaxy Digital Holdings Limited BRPHFAnd Paxos Trust Has moved swiftly to break ties with the troubled bank.

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Photo via pixabay.

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