More than 46,000 claimants could potentially receive a payout from a court-approved settlement involving the FTX-tied Silvergate Bank, which shuttered in 2023.
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One of the class-action lawsuits filed against the cryptocurrency-friendly Silvergate Bank in California is calling for claimants with ties to FTX or Alameda Research accounts.
A group of investors asked Silvergate users who deposited fiat “into an FTX- or Alameda-related account” from 2019 to 2022 to submit claims for a settlement filed in the US District Court for the Southern District of California.
According to the lawsuit, investors until Jan. 30 to opt out or file a claim as part of a $10 million settlement that “resolves a lawsuit over whether Silvergate Bank, Silvergate Capital Corporation, and Alan J. Lane aided and abetted tortious conduct on the part of FTX, Alameda, and Sam Bankman-Fried.”
“The Settlement is fair, reasonable, and adequate […],” said a Dec. 8 court filing asking for approval. “It marks a significant recovery from the bankrupt Silvergate and will provide additional relief, beyond that obtained in the FTX Bankruptcy, for those affected by the multi-billion-dollar collapse of the FTX cryptocurrency exchange.”
Judge Ruth Bermudez Montenegro scheduled a final hearing to consider the settlement on Feb. 9, giving any investors tied to FTX and Alameda more than a month to file claims. According to court filings, the FTX bankruptcy case has reached more than 46,000 potential claimants by mail, which could result in proportional payments from the $10 million settlement.
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Silvergate was one of the few crypto-friendly banks in the US that had ties to the FTX exchange at the time of its collapse in November 2022. The bank voluntarily in March 2023.
Although many of the criminal cases involving former FTX and Alameda executives have concluded in the last three years, there are still some civil matters in courts and one potential prosecution of an individual tied to the exchange.
Former FTX CEO Sam Bankman-Fried, former Alameda Research CEO Caroline Ellison and former FTX Digital Markets co-CEO Ryan Salame are serving time in federal prison for their roles in the collapse. Two other FTX executives, Nishad Singh and Gary Wang, were given time served.
Michelle Bond, Salame’s wife, faces campaign finance charges related to FTX funds in the US District Court for the Southern District of New York. Her legal team induced a guilty plea from Salame on the promise that they would not pursue a case against Bond. The next evidentiary hearing for Bond’s case is scheduled for March 4.
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