Senator Warren forced the liquidation of Silvergate, a report claims.
An unofficial mandate capped Silvergate’s crypto deposits at 15 percent.
Warren pressured FHLB to not renew its loan agreement with Silvergate.
The crypto industry saw the downfall of several crypto-friendly banks last year and according to a report from Pirate Wires, Massachusetts Senator and member of the Senate Banking Committee, Elizabeth Warren, and the broader Joe Biden administration played a role in the collapse of Silvergate Bank.
Silvergate Bank filed for bankruptcy last week and the report authored by Nic Carter detailed how the firm was wronged by the Biden administration, citing new bankruptcy documents and interviews with unnamed individuals as sources. According to the report, had Silvergate not been forced to liquidate, it could have survived the 2022 crypto market crash.
Verbal Mandates and Regulatory Pressure on Crypto Deposits
The report stated that a directive was given to Silvergate to limit its crypto deposits to 15%, which “made the business model unsustainable.” Although there was no formal documentation for this instruction, the bank still complied due …
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