Silvergate Capital, the parent company of Silvergate Bank, filed for Chapter 11 bankruptcy on September 18, 2024, in Delaware, following significant turmoil in the cryptocurrency sector and regulatory scrutiny. The bank, which ceased operations in March 2023, attributed its downfall to a severe downturn in the crypto market, highlighted by the collapse of FTX, which led to over $8 billion in withdrawals. Silvergate's bankruptcy filing indicates assets between $100 million and $500 million and liabilities from $10 million to $50 million, with plans to repay bondholders and preferred equity holders while common stockholders will receive nothing. The company faces multiple legal challenges, including a lawsuit from the SEC alleging it facilitated fraud related to FTX, although the Federal Reserve later dropped charges against it. Silvergate's growth from $1.8 billion in deposits in 2019 to $14.3 billion in 2021 was primarily driven by its ties to crypto exchanges, but the subsequent market collapse rendered its business model unviable. Ultimately, the bankruptcy aims to finalize the bank's liquidation and settle remaining debts using approximately $163 million in cash.