Elizabeth Warren Says She Warned Of Silvergate’s ‘Risky’ Activity: ‘Failure Disappointing, But Predictable’
By Benzinga
Sen. Elizabeth Warren (D-Mass.) voiced her disappointment with Silvergate Capital Bank's (CRYPTO: SI) failure.
What Happened: Warren on Wednesday said she had warned of Silvergate's “risky, if not illegal, activity” — and that she identified "severe due diligence failures. "
"As the bank of choice for crypto, Silvergate Bank's failure is disappointing, but predictable," she said. “Now, customers must be made whole & regulators should step up against crypto risk."
As the bank of choice for crypto, Silvergate Bank's failure is disappointing, but predictable. I warned of Silvergate's risky, if not illegal, activity—and identified severe due diligence failures. Now, customers must be made whole & regulators should step up against crypto risk.
— Elizabeth Warren (@SenWarren) March 8, 2023
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Silvergate on Wednesday said it would wind down operations and voluntarily liquidate Silvergate Bank, a well-known crypto-friendly bank.
"In light of recent industry and regulatory developments, Silvergate believes that an orderly wind-down of bank operations and a voluntary liquidation of the bank is the best path forward," the firm said in a Securities and Exchange Commission filing.
"The bank’s wind down and liquidation plan includes full repayment of all deposits.
The company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets."
