Silvergate's former CEO: Biden administration pressure led to the company's orderly liquidation in 2023, when it was still solvent.

BlockBeats News, September 9 - Alan Lane, former CEO of crypto-friendly bank Silvergate, reflected on the bank's liquidation process, stating that in the fourth quarter of 2022, Silvergate faced customer withdrawals equivalent to 70% of its demand deposits within a matter of weeks, a scale of deposit run no U.S. bank had successfully weathered before in history. Lane noted that Silvergate had managed its balance sheet and liquidity specifically to address the high volatility of the crypto industry, and despite being forced to sell some highly liquid assets at a loss to repay secured borrowings, it maintained sufficient capital and liquidity, remaining solvent throughout.

The 2022 crypto industry crisis led multiple funds and trading platforms into bankruptcy proceedings, causing Silvergate clients to significantly reduce dollar deposits and triggering a bank run. Subsequently, the Biden administration and several federal agencies launched investigations into Silvergate and imposed regulatory policies restricting banks from offering services to the crypto industry. Lane believes external criticism of Silvergate focused mainly on three areas: over-reliance on the crypto sector, interest rate risk, and regulatory compliance. However, he emphasized that business concentration does not equate to a lack of risk management, as Silvergate had specifically planned for industry risks; meanwhile, the bank consistently used high-quality liquid assets to address deposit fluctuations, and no regulator has proven its anti-money laundering controls failed.

After nine years of serving the crypto industry, Silvergate did not collapse due to insolvency or liquidity depletion but chose to voluntarily cease operations under pressure. On March 8, 2023, Silvergate announced an orderly liquidation and halted operations.