Silvergate Bank’s $10M Settlement: FTX, Alameda Clients Urged to Claim

Silvergate Bank will pay $10 million to settle claims it aided FTX and Alameda fraud. Over 46,000 affected customers can file for compensation by January 30, 2025. The settlement is separate from FTX bankruptcy proceedings.

Silvergate Bank has agreed to a $10 million settlement to resolve class-action lawsuits alleging it aided FTX and Alameda Research in fraudulent activities. The settlement is open to over 46,000 potential claimants who deposited fiat into FTX or Alameda-related accounts between 2019 and 2022. Eligible individuals must submit claims by January 30, 2025, with a final approval hearing scheduled for February 9, 2025. Payments will be distributed proportionally among claimants. This settlement is separate from the ongoing FTX bankruptcy proceedings and offers additional compensation to affected customers. Silvergate Bank, once a major crypto-friendly institution, voluntarily shut down in March 2023 following the collapse of FTX. The lawsuit also highlights regulatory concerns over Silvergate's alleged failure to maintain proper anti-money laundering controls, which reportedly allowed billions in suspicious transactions. The settlement provides a direct avenue for compensation to those financially impacted by the FTX and Alameda collapse.