FTX Collapse: $10M Silvergate Bank Settlement for Affected Investors

• A $10 million settlement is proposed against Silvergate Bank for allegedly aiding FTX, Alameda, and Sam Bankman-Fried.
• The settlement is open to Silvergate users who deposited fiat into FTX or Alameda accounts from 2019-2022, with a January 30 deadline.
• The lawsuit highlights the need for greater transparency and accountability in the crypto industry.

Silvergate​‍​‌‍​‍‌​‍​‌‍​‍‌ Bank, the bank of choice for the crypto industry, is facing a class-action lawsuit in California. The lawsuit has been soliciting claimants who have had FTX (Futures Exchange) or Alameda Research accounts.

The lawsuit seeks to establish that Silvergate Bank did not intentionally or knowingly interfere with the violation of the FTCs by the actions of the FTCs, Alameda, and Sam Bankman-Fried. The amount of the lawsuit is $10 million, and it is aimed at people who have been emotionally or financially caused as a result of the collapse of the FTX ​‍​‌‍​‍‌​‍​‌‍​‍‌exchange.

The Settlement Details

The repair is possible for the users of Silvergate whose money was exchanged for fiat in an ftcoralmeda research-related account from 2019 to 2022. Investors are given up to January 30 to take a leave, submit a claim, and a final hearing is set for February 9.

The FTX bankruptcy case includes more than 46,000 potential claimants, and these people may get payments, which will be calculated on a pro-rata basis, from the $10M settlement.

Being one of the very few crypto-friendly banks in the US that had connections with theFutures Exchange at the time when it collapsed in November 2022, Silvergate Bank filed for voluntary liquidation in March 2023. The lawsuit claims that Silvergate Bank provocatively incited and aided in the commission of unlawful acts by Futures Exchange, Alameda, and Sam Bankman-Fried.

Also Read: FTX Caroline Ellison Shifted to Community Confinement Ahead of 2026 Release

The Ongoing FTX Saga

The FTX bankruptcy has given birth to various criminal cases against ex-FXT and Aldema executives. The majority of these cases are over, while a few civil matters linger in local courts, and there is only one possible criminal case concerning an individual linked to the exchange that is still ongoing.

Sam Bankman-Fried, Caroline Ellison, and Ryan Salame, the former Futures Exchange CEO, the former Alameda Research CEO, and the former Futures Exchange Digital Markets co-CEO, respectively, are the ones who are behind bars in the federal prison system.

Also Read: Bitcoin ETF Outflows Hit $2.8 Billion as Long Liquidations Spike to FTX-Era Levels