Silvergate’s Settlement Agreements with the Federal Reserve, California Department of Financial Protection and Innovation and Securities and Exchange Commission

On July 1, 2024, Silvergate announced it has agreed to settlements with the Board of Governors of the Federal Reserve System (“Federal Reserve”), the California Department of Financial Protection and Innovation (“DFPI”) and the Securities and Exchange Commission (“SEC”). In a statement, Silvergate noted its decision to liquidate voluntarily and without government assistance in March 2023, and that, as of November 2023, all deposits had been repaid to banking customers, soon after which Silvergate ceased banking operations. The announced settlements, which facilitate the surrender of Silvergate’s bank charter, are part of the Bank’s continued orderly wind down and conclude investigations by the Federal Reserve, DFPI, and SEC. Cravath represented Silvergate in connection with the investigations, resulting settlements, and voluntary liquidation.

Partner Benjamin Gruenstein, of counsel Jeffrey A. Rosen, practice area attorney Lindsay J. Timlin and associates Dean M. Nickles and Benjamin S. Spiegel represented Silvergate regarding investigative matters; partner Jelena McWilliams, of counsel Will C. Giles and associate Jonathan A. Gordon represented Silvergate regarding bank regulatory matters; and partner D. Scott Bennett and associates Ellen H. Park, Joshua Kameel and Danielle A. Solaru represented Silvergate regarding corporate matters.