{"id":10708,"date":"2023-03-04T08:17:29","date_gmt":"2023-03-04T08:17:29","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=10708"},"modified":"2023-03-04T08:17:30","modified_gmt":"2023-03-04T08:17:30","slug":"silvergate-to-return-9-85m-deposit-to-blockfi","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=10708","title":{"rendered":"Silvergate to return $9.85M deposit to BlockFi"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<h2>Ad<\/h2>\n<p>Silvergate Bank has been ordered to return $9.85 million to BlockFi as part of the latter firm\u2019s ongoing bankruptcy proceedings, according to a March 3 filing.<\/p>\n<h2>BlockFi will see $9.85 million returned<\/h2>\n<p>That court filing says BlockFi and Silvergate entered an agreement in August 2020 where Silvergate acted as a depository institution to handle certain ACH transactions. In November 2021, BlockFi agreed to establish a reserve containing $10 million.<\/p>\n<p>The agreement stated that the account would terminate 90 business days after the last relevant transfer, granting BlockFi unrestricted access to those funds.<\/p>\n<p>As a result, Silvergate is now compelled to release $9.85 million from the reserve account. It is permitted to hold the remaining $150,000 in the reserve account.<\/p>\n<p>The court order is part of BlockFi\u2019s ongoing bankruptcy proceedings. The crypto lending firm filed for bankruptcy in November 2022. It has more than 100,000 creditors and owes between $1 billion and $10 billion to those creditors.<\/p>\n<h2>The relationship between BlockFi and Silvergate<\/h2>\n<p>After BlockFi filed for bankruptcy in November 2022, Silvergate said that it had less than $20 million of exposure to BlockFi. It also said that it was not a custodian for BlockFi\u2019s Bitcoin-collateralized SEN Leverage loans and had no investments in BlockFi.<\/p>\n<p>The two companies nevertheless maintained a close relationship. BlockFi called Silvergate a \u201cbanking partner\u201d on Nov. 10 and said that it would halt ACH and wire processing for three days due to Silvergate\u2019s observance of a holiday. Later that same day, BlockFi announced that it would halt withdrawals indefinitely due to FTX\u2019s separate collapse.<\/p>\n<p>This week\u2019s court order compelling the return of funds is seemingly unrelated to a recent controversy around Silvergate. On Mar. 1, Silvergate said that it would delay its 10-K filing and alluded to various ongoing regulatory investigations.<\/p>\n<p>That development led several major crypto companies to distance themselves from the crypto-friendly bank. BlockFi did not comment on Silvergate\u2019s issues this week.<\/p>\n<p>Posted In: Bankruptcy, Lending<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/silvergate-to-return-9-85m-deposit-to-blockfi\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ad Silvergate Bank has been ordered to return $9.85 million to BlockFi as part of the latter firm\u2019s ongoing bankruptcy proceedings, according to a March 3 filing. BlockFi will see $9.85 million returned That court filing says BlockFi and Silvergate entered an agreement in August 2020 where Silvergate acted as a depository institution to handle [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10709,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-10708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10708"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10708\/revisions"}],"predecessor-version":[{"id":10710,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10708\/revisions\/10710"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/10709"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}