Silvergate, Silicon Valley, Signature: 3 crypto friendly banks found dead
Silvergate was a crypto bank that had a unique 24h/24 365/365 crypto and fiat settlement network. Silicon Valley Bank was one of the main bank of crypto companies, and Signature Bank was another bank notoriously welcoming to crypto companies.
Now they are saying the Silicon Valley's failure was due to greed and avarice... (Silicon Valley's "greed and avarice" have "finally come home to roost" in SVB collapse, trader says - CNBC). Signature, another crypto friendly bank, saw 10 billion dollars withdrawn by its customers on Friday, before being shut down by regulators.
If you want to learn what was so particular about Silvergate and why it was playing a key role in the crypto industry, you can watch this video from CoinBureau:
$40b withdrawn from Silicon Valley in 36 hours, $10b in a day for Signature. Was it just a bank run due to panic, or a coordinated attack? After the fall of Silvergate, the crypto industry was weaker than ever. Was it the right time to pull the trigger on its two other bank friends?
Is liquidating crypto friendly banks part of a grand plan to crack down on crypto?
Edit 2023-03-15: ok, you probably thought that I was going a bit too far in the conspiracy theory in my story... well, you can read these three articles:
- Brian Brooks: US government using crisis to choke off crypto access to banks - CoinDesk - where Brian Books explains why he thinks that the demise of these three crypto-friendly banks is not a coincidence.
- Crypto advocates say Signature closing plays into Operation Chokepoint rumors - Forbes - where you learn that Signature Bank also had its 24/7 crypto payment network called Signet. The article also states that First Republic Bank was under heavier stress than Signature, but wasn't shut down, leaving to think that Signature was seized mainly because it was an ally of the crypto-industry.
- Operation Choke Point 2.0 is underway, and crypto is in its crosshairs - Nic Carter - where you get a detailed explanation of what the anti-crypto Operation Choke Point 2.0 is. This article was written before the fall of Silvergate, Sillicon Valley and Signature and explains how the administration is trying to cut crypto industry off the banking system.
Ok, these are well written articles, especially the last one. Still, this smells a lot of conspiracy theory, so I personally cannot tell. And in the end, crypto needing the help of the traditional banking system, it's a bit counter intuitive no?
Rest In Peace crypto banks ... while those who survived try to find other partners: