“Silvergate Bank could have continued to operate had it not been forced into voluntary liquidation under pressure from US regulators. This was announced by Castle Island Ventures partner Nick Carter. My latest in @PirateWires: Inside the Biden Admin’s Plot to Destroy Silvergate and Debank Crypto for Goodhttps://t.co/qGsSoi3aCG — nic carter (@nic__carter) September 25, 2024 “Silvergate could survive its fall and was […]”, — write: businessua.com.ua
Silvergate Bank could have continued to operate had it not been forced into voluntary liquidation under pressure from US regulators. This was announced by Castle’s partner Island Ventures Nick Carter.
My latest in @PirateWires:
Inside the Biden Admin’s Plot to Destroy Silvergate and Debank Crypto for Goodhttps://t.co/qGsSoi3aCG
— nic carter (@nic__carter) September 25, 2024
“Silvergate could survive its fall and was well on its way to doing so,” the analyst wrote.
He substantiated his position by analyzing documents on the organization’s bankruptcy. During a conversation with insiders, Carter revealed that Joe Biden’s administration had privately demanded that the institution cap cryptocurrency deposits at 15% or face consequences.
Carter noted that a recovery in the digital asset market in late 2023 would help Silvergate weather the difficulties.
He called the voluntary liquidation of the bank instead of reorganization under supervision “suspicious”. FDIC. According to him, there were only a few such cases in the last three decades.
“This is further evidence that Silvergate was ‘killed’ by the regulator’s actions, rather than the debacle in the sector that it experienced,” he explained.
Carter acknowledged that the agency could have strengthened its money-laundering controls and detected improper FTX transfers much earlier.
Since March 2023, the expert suspects that the US authorities have been conducting a campaign aimed at limiting the ability of organizations to maintain ties with crypto firms and interact with digital assets.
“The government’s desire to “decapitate” the industry by covertly passing rules for the institutions that serve it launched and intensified the banking crisis of 2023,” the expert commented.
In February 2023, it became known that the Fraud Division of the US Department of Justice was investigating the connection of Silvergate Bank with the victims of the collapse of FTX and Alameda Research. Moody’s downgraded the organization’s rating due to a reduction in the basic credit rating.
On March 8, Silvergate Capital Corporation announced its intention to wind down operations and close the bank.
On March 10, the California Department of Financial Protection and Innovation shut down Silicon Valley Bank (SVB) and appointed the FDIC as administrator due to “insufficient liquidity and insolvency.”
On March 13, the US authorities began the procedure for the rehabilitation of SVB and Signature Bank.
It will be recalled that former member of the US House of Representatives and member of the board of the latter Barney Frank criticized the actions of the regulator, stating that NYDFS forced the bank to close because of its involvement in the digital asset industry.
The source