“Conspiracy Theory” about closure of Silvergate Bank, which worked with crypto companies

Castle Island Ventures partner Nick Carter made a statement about the collapse of Silvergate Bank, which may seem quite logical. He believes that the bank could have continued to operate if it had not been forced into voluntary liquidation under pressure from US regulators.

The expert analyzed bankruptcy documents and spoke with insiders. He learned that the Joe Biden government unofficially demanded that the bank limit deposits in crypto assets to 15% or prepare for the consequences.

At the same time, Carter recalled the revival of the digital currency market at the end of last year, which would have allowed Silvergate to cope with the problems. He considers the voluntary liquidation of the bank instead of reorganization under the control of the authorities “suspicious”. The expert noted that only a few similar cases have been recorded over the past 30 years.

“This is further evidence Silvergate was ultimately killed by regulatory mandate, not the bank run it suffered,” he explained.

The Castle Island Ventures partner suggested that the US authorities have launched a campaign aimed at restricting businesses’ ability to collaborate with crypto projects.