Former Silvergate CEO Claims Biden Administration Pressure Led to 2023 Liquidation

Former Silvergate CEO Alan Lane stated in a lengthy Substack post that the bank met withdrawal demands equivalent to 70% of its demand deposits within weeks in the fourth quarter of 2022, setting a record as the first U.S. bank to withstand a 70% deposit run. He noted that the bank's balance sheet was prepared for such a scenario. Lane claimed that the Biden administration initiated a "coordinated pressure" campaign against the crypto industry, with multiple federal agencies investigating Silvergate. Banking regulators issued a joint statement restricting banks from providing services to the crypto sector, ultimately leading the company to announce a voluntary liquidation on March 8, 2023. In response to external criticisms, Lane addressed each point: he believes that focusing on the crypto industry was a clear strategy, the company had withstood larger-scale runs, proving effective risk management; Silvergate's loans were fully collateralized at market value, and it did not utilize the Federal Reserve's Bank Term Funding Program launched in March 2023. Although it was forced to sell liquid assets at a discount to repay collateralized loans and recorded losses, its capital and liquidity remained sufficient to sustain operations; in terms of compliance and regulation, the bank maintained transparency with regulators throughout its nine years of operation, and no regulatory agency has proven failures in its anti-money laundering controls.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.