The Breakdown The Plot to Destroy Silvergate and Debank Crypto
Sep 29, 2024
Nic Carter, a venture capitalist and expert on Operation Choke Point 2.0, dives into the collapse of Silvergate Bank, revealing how regulatory pressures influenced its downfall. He examines the impact of the FTX scandal and discusses the exclusion of major crypto deposits during significant bank sales. Carter argues that collusion among regulators precipitated this unique case of voluntary liquidation, prompting a wider discussion on the future of cryptocurrency regulation and the need for community involvement.
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Regulatory Pressure on Crypto Banks
- Multiple regulatory agencies pressured crypto-adjacent banks like Silvergate, Signature, and First Republic.
- These banks faced scrutiny and warning shots from regulators, echoing the tactics of Operation Choke Point.
FDIC's Actions Against Signature Bank
- The FDIC's refusal to sell Signature's crypto-related deposits or Signet platform suggests a deliberate attack on the crypto industry.
- This action hindered value maximization and indicated a covert attack on pro-crypto banks.
Weaponizing CSI Against Banks
- Regulators used Confidential Supervisory Information (CSI) to silence banks and protect their reputation, not the banks'.
- The 15% crypto deposit cap, communicated verbally, was never formally opposed due to regulatory threats.