Bank

Biden

Silvergate Bank could have survived but US regulators stepped in to “decapitate” the crypto industry, suggests Nic Carter in his latest report. He claims that Biden’s administration reportedly told the defunct bank to cap crypto deposits at 15% or face severe consequences. 
Fresh revelations have added more weight to Carter’s theory of <a href="https://www.cryptopolitan.com/gary-gensler-doubles-down-on-defi-regulation/">Operation Choke Point 2.0</a>. It is a highly rumored covert effort to choke out crypto-friendly banks by limiting their involvement in digital assets. However, the report coming out just before the US Presidential elections can prove to be a turning point for both candidates. 
<h3 id="span-style-font-weight-400-biden-admin-behind-crypto-bank-s-demise-span">Biden admin behind crypto bank’s demise</h3> 
According to <a href="https://www.piratewires.com/p/inside-biden-admin-plot-to-destroy-silvergate-and-debank-crypto-for-good-nic-carter" rel="nofollow noopener" target="_blank">the report</a>, Carter disclosed that bankruptcy filings and exclusive interviews with anonymous sources suggest Silvergate could have survived if not for pressure from regulators. <a href="https://www.cryptopolitan.com/federal-reserve-actions-against-silvergate/">Silvergate Bank</a> was on top of the crypto world in 2022. Its Silvergate Exchange Network (SEN) took a crucial part in the&nbsp; infrastructure for crypto’s institutional players 
SEN’s shares in the company had surged from $35 at the end of 2020 to $220 at the end of 2021, but the bank no longer exists in 2024. 
Carter highlighted that Sen. Elizabeth Warren accused Silvergate of aiding and abetting <a href="https://www.cryptopolitan.com/ftx-estate-continues-to-find-millions/">FTX’s crimes</a>. This created an atmosphere of concern around the bank, which possibly contributed to a run on the bank. 
The report mentions that Warren wrote two letters to CEO Alan Lane in December 2022 and January 2023. In these letters, she criticized the bank and its lending trust that they might have criminal liability originating from its relationship with FTX. 
<h3 id="span-style-font-weight-400-elizabeth-warren-pushed-silvergate-over-the-edge-span">Elizabeth Warren pushed Silvergate over the edge</h3> 
As per the report, the source admitted that the Federal Home Loan Banks (FHLB) refused to renew their monthly loan agreement with the bank. This move was motivated by the political pressure emerging from Warren which accelerated the bank’s losses. 
It added that on January 30, 2023, Warren had sent out the second letter where she complained about Silvergate’s responses to her first one. She appeared to be pressuring the FHLB which the crashed bank was using for last-resort liquidity.&nbsp; 
Carter suggested that it looked like her objective was to get the FHLB to pull the rug on Silvergate and force them to close. Meanwhile, the FHLB later declined to renew their monthly facility with the Silvergate which might be the biggest blow for the bank. 
The claims flying around the criminal wrongdoing related to Silvergate’s association with FTX were never proven and no such criminal charges came against the bank. The massive downfall of Silvergate was the primary cause of the 2023 regional banking crisis. This eventually tore the Signature, Silicon Valley Bank, and the First Republic down with it.

Did the Biden admin target Silvergate to crush crypto?

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