Is the FHLB Loan a Red Flag for the Crypto Industry?

Silvergate, a crypto bank, was taken out an FHLB loan to fund deposit outflows. It's not a great sign for banks when they have to engage in emergency borrowing like that. There could be strings attached to those loans; one of them could just be that the economic terms of a loan changes and it's no longer functional. Another potential option is that you've got to be adequately capitalized - now you have another potential source of problem.