Former FTX Customers Eligible for Share of $10M Silvergate Bank Settlement — Claims Due Jan 30, 2026
A proposed class action settlement has been reached between former FTX customers and Silvergate Bank (and other defendants) over alleged participation with FTX, Alameda Research and Sam Bankman-Fried. Defendants deny wrongdoing. The settlement fund totals $10 million and will be distributed to eligible class members who submit valid claims after litigation costs and fees. Eligibility requires all five conditions: (1) depositing fiat into an FTX- or Alameda-related Silvergate Bank account between April 1, 2019 and November 11, 2022; (2) holding an FTX.com or FTX.us account on November 11, 2022; (3) that account contained crypto, fiat, or both; and (4) no prior employment or ownership in Silvergate, FTX, Alameda or related entities. Claims must be submitted online at www.FTXBankSettlement.com or by paper request (1-833-417-4936) and be postmarked or filed by January 30, 2026. Class members who opt out by the same date preserve litigation rights but forfeit settlement benefits; objections may also be filed by January 30, 2026. A fairness hearing is scheduled for February 9, 2026, where the court will consider approving the deal and plaintiff requests for up to $3.3 million in attorneys’ fees, $150,000 in expenses, and service awards up to $10,000 each for three plaintiffs. The notice emphasizes that the defendants deny liability and provides links and contact details for claim submission and more information.
Neutral
The settlement is primarily a legal/claims matter with limited direct market-moving effects. The $10 million fund is modest relative to the broader crypto market and the scale of FTX-related losses, so it is unlikely to materially affect asset prices. Traders may view this as incremental legal closure for a subset of former FTX customers, which can modestly reduce long-tail litigation uncertainty. Short-term: limited impact — brief attention in news and potential modest sentiment improvement among affected users. Long-term: neutral — the settlement does not alter fundamentals for major crypto assets or ongoing regulatory/legal proceedings tied to FTX and its principals. Market volatility is more likely to be driven by larger regulatory actions, bankruptcy recoveries, or major crypto-adoption events than by this payout. Historical parallels: past small-to-medium settlements related to exchange failures have not produced sustained market moves; they typically resolve claimant uncertainty without changing macro risk sentiment.