Silvergate Bank to release nearly $9.9 million to BlockFi

Quick Take

  • Silvergate Bank has agreed to release close to $9.9 million to crypto lender BlockFi on Friday. A U.S. bankruptcy judge agreed with the stipulation and ordered the release. 
  • This comes days after Silvergate said it was in the “process of reevaluating its business strategies” and facing capital problems. 

A bankruptcy judge has ordered Silvergate Bank to release nearly $9.9 million to crypto lender BlockFi, days after the bank said it was “reevaluating its business” and could be "less than well-capitalized," which led to a swarm of companies severing ties with the bank. 

U.S. Bankruptcy Judge Michael B. Kaplan said Silvergate had to return $9,850,000 deposited by BlockFi, according to a court filing on Friday.  

BlockFi filed for bankruptcy protection in November 2022. Soon after filing, BlockFi began negotiating with Silvergate for the release of $10 million in a reserve account held at the bank, and it reached an agreement on Friday f