U.S. Bankruptcy Judge Michael B. Kaplan said Silvergate had to return $9,850,000 deposited by BlockFi, according to a court filing on Friday.  

BlockFi filed for bankruptcy protection in November 2022. Soon after filing, BlockFi began negotiating with Silvergate for the release of $10 million in a reserve account held at the bank, and it reached an agreement on Friday for the bank to release a majority of those funds within two business days.