Silvergate Bank has agreed to give approximately $9.9 million to crypto lender BlockFi.
Silvergate Bank, which is having a hard time in the industry, will pay BlockFi. A US bankruptcy judge agreed to the condition and ordered the money to be paid.
BlockFi Will Receive Approximately $9.9 Million From Silvergate Bank
The payout comes days after Silvergate said it was in the process of re-evaluating its business strategies and was facing capital issues.
A bankruptcy judge said the bank was re-evaluating its business and could be less than capitalized. However, he ordered Silvergate Bank to pay approximately $9.9 million to the bankrupt crypto lender BlockFi.
US Bankruptcy Judge Michael B. Kaplan has ruled that Silvergate should return the $9,850,000 deposited by BlockFi, according to a court filing.
BlockFi had filed for bankruptcy protection in November 2022. Shortly after the application, BlockFi began negotiating with Silvergate for the payment of $10 million in a reserve account held at the bank.
Following the bankruptcy court’s decision, BlockFi will be able to receive its payment from Silvergate Bank.
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