• Silvergate Bank recently announced their voluntary liquidation.
• U.S. Senator Elizabeth Warren has attributed the financial institution’s downfall to “crypto risk” and expressed disappointment with Silvergate’s failure.
• Critics have dismissed Warren’s opinion as “terribly misinformed” and argued that she is “tossing out egregious accusations”, while some crypto proponents offered different perspectives on Silvergate Bank’s downfall.
Silvergate Bank Announces Voluntary Liquidation
After Silvergate Bank announced its voluntary liquidation, U.S. senator Elizabeth Warren is attributing the financial institution’s downfall to „crypto risk.“
Elizabeth Warren Blames ‚Crypto Risk‘ for Bank Downfall
According to Warren, she had previously warned about Silvergate. However, some critics are dismissing Warren’s opinion as „terribly misinformed“ and claim that she is „tossing out egregious accusations.“
Crypto Proponents Offer Different Perspectives
Hours after Silvergate Bank announced its liquidation, U.S. senator Elizabeth Warren (D-MA) tweeted about the financial institution’s demise expressing her disappointment with the situation and warning of the risks associated with cryptocurrencies again. On March 9, Senator Warren tweeted, „I warned of Silvergate’s risky, if not illegal, activity—and identified severe due diligence failures.“ Her tweet drew criticism almost immediately from people who accused her of starting a bank run with her spurious claims and misleading statements regarding cryptocurrencies in general – namely equating them to objects rather than individuals or businesses responsible for any potential harm incurred by investors in such assets.
Critics Respond to Senator’s Claims
In response to Senator Warren’s statement on Thursday, one person asked the politician if she had ever managed to „not be terribly misinformed while tossing out egregious accusations?“ Crypto CFA Ram Ahluwalia also offered a different perspective on the matter by suggesting that it was a bank run caused by customers which led to Silvergate Bank’s eventual closure rather than anything related directly or indirectly to cryptocurrencies themselves or their associated risks/rewards profiles for investors at large – both retail and institutional alike..
To conclude, many have taken issue with Senator Elizabeth Warren blaming „crypto risk“ for Silvergate Bank’s closure despite evidence presented by crypto proponents which suggest otherwise – namely that it was a lack of customer confidence in traditional banking systems which caused this particular instance of bank failure rather than anything cryptocurrency-related at all; regardless of whatever opinion one may hold on such matters always remember that research and due diligence are key when making any kind of investment decision irrespective of asset class(es).