• Silvergate Bank has recently declared that it will voluntarily close down, sparking a conversation about who was responsible for the fall of the first domino and where crypto companies might go for their banking requirements.
• Several businesses have assured clients that they have no assets housed with Silvergate, while some industry figures are accusing the government of hastening the collapse by launching investigations and legal attacks.
• Lumida’s CEO Ram Ahluwalia believes that a senator’s letter eroded public distrust in Silvergate, and that this ultimately led to its downfall.

Silvergate Failure Sparks Conversation

The failure of the crypto-friendly bank Silvergate has sparked a conversation among government exes and the cryptocurrency community about who was responsible for its downfall, and what other companies can do to meet their banking needs.

Businesses Disassociate from Bank

Several businesses have used this opportunity to reassure customers that they were never linked with Silvergate – Binance CEO Changpeng Zhao tweeted that his exchange has no assets stored with them, whilst Coinbase engaged in a staking ramble with the SEC to confirm that no customer funds were held there either.

Government Accused of Hastening Collapse

Nic Carter, co-founder of Castle Island Ventures and Coin Metrics suggested on Twitter that it was actually the authorities who „hastened“ Silveragte’s collapse by deploying investigations and legal attacks on it – an opinion shared by Lumida’s CEO Ram Ahluwalia who believes a senator’s letter eroded public trust in the company.

Implications of Failure

The implications of Silvergate’s failure extend beyond those directly affected – many view their demise as indicative of broader issues within financial regulation pertaining to cryptocurrencies, particularly when it comes to due process when accusations are made against firms associated with them.

Where Crypto Companies Can Go Now?

With Silveragate gone, many people are now asking where crypto companies can turn for their banking needs going forward? The answer is unclear at present but one thing is certain: any such alternative must possess sufficient regulatory oversight in order to ensure adequate consumer protection measures are in place.