Silvergate Collapse: New Claims Challenge Official Narrative

• Nic Carter accused the Federal Reserve of playing a role in Silvergate’s liquidation.
• Carter believes Silvergate was the first casualty in a crypto crackdown campaign.
• The government attempted to blackmail Silvergate because of its link with FTX.

Cryptocurrency expert Nic Carter has pointed the finger at the Federal Reserve, alleging they played a major role in the well-known Silvergate liquidation of early 2023. Carter contends that the Fed pressured the California-based bank to scale back its crypto business. To comply with such a recommendation, Silvergate would have been forced to restructure its business, ultimately leading to its liquidation.

In an X (formerly Twitter) post, Carter asserted that Silvergate was the first casualty in a crackdown campaign against banks involved in the crypto space by the Biden administration. Carter believes the Fed, FDIC, and OCC launched “operation choke point 2.0” to accomplish their goal.

Challenging the Official Narrative

While the prevailing story behind Silvergate’s liquidation suggests the bank voluntarily liquidated after borrowers defaulted on crypto loans, Carter disputes this. He maintains that Silvergate withstood the challenges despite negative interference from members of Congress.

Read also : Crypto Bank Silvergate Repays Deposits as Part of Liquidation Plans

Carter further emphasized how the government tried to blackmail Silvergate due to its connection with FTX. However, he clarified the bank was cleared of all criminal allegations in its dealings with the now-defunct crypto exchange, remaining solvent and capable of continuing business afterward.

“Silvergate Died by Murder, Not Suicide”

Therefore, Carter stated that his recent post on X was to make it clear that “Slivergate died by murder, not suicide.” More specifically, he asserted that the Fed unconstitutionally asked Silvergate to cut its crypto deposits to 15% of its book. He believes the Fed intended the ultimatum to cripple pro-crypto banks and prevent crypto firms from accessing banking services.

Read also : Judge Combines Silvergate Lawsuits Alleging FTX Connection

In short, the well-known crypto figure noted he made the recent post to emphasize that there is still no evidence of any scandal at Silvergate beyond statements made by bank executives and background journalists. He claims many people affected by the situation, such as Elaine Hetric, former chief administrative officer of Silvergate, have repeatedly corroborated his opinions while the full picture of the Silvergate situation remains unclear.

Carter noted the bank has been in a wind-down mode as it works towards a settlement with the Securities and Exchange Commission (SEC).