• Silvergate Bank announced its voluntary liquidation and U.S. Senator Elizabeth Warren blamed “crypto risk” for the bank’s downfall.
• Critics dismissed Warren’s opinion as „terribly misinformed“ and claimed that she is „tossing out egregious accusations.“
• Crypto proponents offered different perspectives on Silvergate Bank’s failure, with some criticizing Warren for her claims of a „massive crypto scandal.“
Silvergate Bank Announces Liquidation
Silvergate Bank announced its voluntary liquidation on March 9th, 2021.
Senator Elizabeth Warren Blames “Crypto Risk”
U.S. senator Elizabeth Warren is attributing the financial institution’s downfall to „crypto risk,“ claiming she had previously warned about Silvergate. However, some critics are dismissing Warren’s opinion as „terribly misinformed“ and claim that she is „tossing out egregious accusations.“
Crypto Proponents Offer Different Perspectives
Hours after Silvergate Bank announced its liquidation, U.S. senator Elizabeth Warren (D-MA) tweeted about the financial institution’s demise and referred to cryptocurrencies as risky in her statement. This was met with criticism almost immediately after its publication from those who disagreed with her views on the matter and argued that she was blaming objects rather than individuals or businesses for failure.. Crypto CFA Ram Ahluwalia offered a different perspective on the Silvergate situation, suggesting that it faced a bank run which led to its ultimate downfall due to lack of trust among customers and not necessarily because of cryptocurrency trading activity alone.
Critics Dismiss Senator’s Claims
Some critics are challenging Senator Warren’s claims by accusing her of starting the Silvergate bank run through her letter containing numerous accusations regarding a supposed “massive crypto scandal” and being “terribly misinformed while tossing out egregious accusations” about cryptocurrencies causing harm to investors rather than crypto business operators.
Conclusion
The discussion around Silvergate Bank’s liquidation has sparked debate between those who believe in Senator Elizabeth Warren’s view that “crypto risk” caused the financial institution’s downfall versus those who disagree with this notion and propose alternative perspectives such as lack of trust among customers or inadequate due diligence from regulators leading up to Silvergate Bank’s collapse .