September 3, 2025
Investors of failed, cryptocurrency-focused Silvergate Bank secured a California federal judge’s final approval Wednesday for their $37.5 million settlement of claims alleging the bank misrepresented its safeguards against onboarding customers like the collapsed, fraud-ridden crypto exchange FTX.
U.S. District Judge James E. Simmons Jr. granted final approval of the deal in an order, finding it, “in all respects, fair, reasonable and adequate to the settlement class” and dismissing the claims with prejudice.
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In an email, Carol Gilden, an attorney for the investors, told Law360 that “In light of Silvergate Capital’s bankruptcy, the settlement is a highly favorable resolution that ensures an immediate recovery for impacted investors.”
“We are proud that the pension and union funds we represented had the resolve to step forward on behalf of investors and demand accountability from Silvergate Capital,” she added.
The investors are represented by Carol V. Gilden, Steven J. Toll, S. Douglas Bunch, Jan Messerschmidt, Brendan Schneiderman and Christina D. Saler of Cohen Milstein Sellers & Toll PLLC and Jonathan D. Uslaner, Lauren M. Cruz, John J. Rizio-Hamilton and Shane D. Avidan of Bernstein Litowitz Berger & Grossmann LLP.