FTX victims eligible for compensation from $10M Silvergate settlement

Former customers of FTX and Alameda Research are now eligible for compensation from a $10 million class-action settlement involving Silvergate Bank, the crypto-friendly lender that went bankrupt in 2023. The settlement aims to resolve allegations that Silvergate aided and abetted FTX's fraudulent activities, Cointelegraph reported. Approximately 46,000 individuals affected by the collapse of FTX can file a claim for compensation through the official settlement website until Jan. 30, 2026. Regulators, including the U.S. Securities and Exchange Commission (SEC), had previously claimed that Silvergate failed to maintain an adequate Anti-Money Laundering (AML) system, which resulted in its failure to detect roughly $9 billion in suspicious transactions related to FTX. This settlement offers an additional form of relief separate from the compensation being distributed through the FTX bankruptcy proceedings.