Former CEO of Silvergate: Biden administration pressures for orderly liquidation of company in 2023, while still solvent at the time According to BlockBeats, on September 9th, Alan Lane, former CEO of crypto friendly bank Silvergate, reviewed the bank's liquidation process and stated that Silvergate had responded to customer withdrawals equivalent to 70% of current deposits in the fourth quarter of 2022 within a few weeks. Previously, no bank in US history had successfully survived such a large-scale deposit run. Lane stated that Silvergate had already managed its balance sheet and liquidity in response to the high volatility of the cryptocurrency industry at the time. Despite being forced to sell some highly liquid assets at a loss to repay mortgage loans, it still had sufficient capital and liquidity to maintain solvency. The 2022 crypto industry crisis led to multiple funds and trading platforms entering bankruptcy proceedings, causing Silvergate clients to significantly reduce their US dollar deposits and trigger a run on the market. Subsequently, the Biden administration and multiple federal agencies launched an investigation into Silvergate and implemented regulatory policies to restrict banks from providing services to the cryptocurrency industry. Lane believes that external criticism of Silvergate mainly focuses on its excessive reliance on the cryptocurrency industry, interest rate risk, and regulatory compliance. However, he emphasizes that business concentration does not mean a lack of risk management, and Silvergate has specifically planned for industry risks; At the same time, the bank has always responded to deposit fluctuations with high-quality liquid assets and claims that no regulatory agency has proven that its anti money laundering controls are ineffective. Silvergate did not go bankrupt due to insolvency or liquidity depletion after serving the cryptocurrency industry for nine years, but chose to voluntarily cease operations under pressure. On March 8, 2023, Silvergate announced an orderly liquidation and ceased operations. [Original link]