Silvergate Bank's FTX-related lawsuit, involving the Sam Bankman-Fried case, proposes a $10 million settlement plan

2026-01-21 10:17:27

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Good news may be on the horizon for customers caught up in the collapse of FTX and Alameda Research. A $10 million settlement proposal has been presented in a class-action lawsuit against Silvergate Bank, a cryptocurrency-friendly bank in California, and a call for comments from affected investors is currently underway. The lawsuit alleges that Silvergate Bank aided in the misconduct of FTX and Alameda led by Sam Bankman-Fried.

$10 Million Settlement Proposed to Compensate Victims

The settlement targets users of Silvergate Bank who deposited funds into accounts related to FTX or Alameda between 2019 and 2022. The United States District Court for the Southern District of California is moving forward with implementing this settlement, aiming to partially resolve claims against Silvergate Bank, Silvergate Capital Corporation, and Alan J. Lane. According to court documents dated December 8, the settlement is deemed “fair and reasonable” and is expected to provide additional compensation to victims of the FTX collapse.

Call for Investor Participation and Important Deadlines

Eligible investors must either opt out of this lawsuit or submit comments on the $10 million settlement by January 30. Judge Ruth Bermudez Montenegro is scheduled to conduct a final review of the settlement on February 9. Over 46,000 potential claimants related to FTX have been notified via email during the initial bankruptcy proceedings, and the settlement funds are expected to be distributed proportionally.

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