2 years ago
Silvergate Bank has been ordered to instrumentality $9.85 cardinal to BlockFi arsenic portion of the second firm’s ongoing bankruptcy proceedings, according to a March 3 filing.
That tribunal filing says BlockFi and Silvergate entered an statement successful August 2020 wherever Silvergate acted arsenic a depository instauration to grip definite ACH transactions. In November 2021, BlockFi agreed to found a reserve containing $10 million.
That statement stated that the relationship would terminate 90 concern days aft the past applicable transfer, granting BlockFi unrestricted entree to those funds.
As a result, Silvergate is present compelled to merchandise $9.85 cardinal from the reserve account. It is permitted to clasp the remaining $150,000 successful the reserve account.
The improvement is seemingly unrelated to a caller and broader contention astir Silvergate. This week, Silvergate said that it would hold its 10-K filing and alluded to assorted ongoing regulatory investigations, which successful crook led respective large crypto companies to distance themselves from the crypto-friendly bank.
The tribunal bid is alternatively portion of BlockFi’s ongoing bankruptcy proceedings. The crypto lending steadfast filed for bankruptcy successful November 2022. It has much than 100,000 creditors and owes betwixt $1 cardinal and $10 cardinal to those creditors.
The station Silvergate to instrumentality $9.85M deposit to BlockFi appeared archetypal connected CryptoSlate.
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