Have You Seen This?! US Plans To Debank Crypto REVEALED!

hey so remember when FTX collapsed stocked by what happened this month we messed up big of course you do that's a scar that's never going away now you might also remember that silvergate bank was accused of conspiring with FTX in its Shady dealings but maybe silvergate wasn't actually at fault sounds crazy right crazy that is crazy well perhaps not according to insights from a well-respected and well-placed figure in the crypto industry we might not have the whole story so follow us down the rabbit hole as we break this Saga down and tell you why things aren't as they seem let's dig in the source for today's video is an article titled inside the Biden admins plan to destroy silvergate and debank crypto for good now just to clarify this video isn't partisan it's just a straightforward summary of The Facts at hand and we'll leave a link to the full article in the description and we do recommend you check it out we'll summarize the juiciest parts for you here in this video though now the piece was written by Nick Carter and if that name sounds familiar that's because aside from being a partner at Castle Island Ventures co-presenting the excellent on the brink podcast and generally being a vocal advocate for the industry Nick also coined the term operation chokepoint 2. 0 for those unfamiliar choke 2. 0 is a rogue operation by us Regulators to restrict crypto companies access to banking services effectively choking them out of funding and you can learn more about operation chokepoint 2.

0 in the description now the reason why we're talking about chokepoint 2. 0 by the way is because the original operation choke point was conducted by the Obama Administration and targeted other unfavored Industries such as firearms and gambling aiming to likewise choke off their access to banking the current Administration resurrected and repurposed it to go after crypto anyway Nick's article kicks off with an introduction to silvergate once a major bank for crypto institutions silvergate popularity exploded when it introduced The silvergate Exchange Network or sen a crucial bit of infrastructure that allowed its crypto clients to settle 247 rather than being restricted to normal banking hours at its peak nearly every big crypto firm was banking with silvergate by the end of 2021 crypto companies held over 11 billion in deposits 82% of the bank's total that is an incredible statistic unfortunately though not all of silvergate clients were so incredible in 2017 it onboarded alamida research run by Diddy's current cellmate Sam bankman freed when SBF created FTX in 2018 silvergate served them too and for a while things were looking pretty great fast forward though to May 2022 and things weren't so great the collapse of the US stablecoin sent the crypto Market into chaos soon after crypto lenders Voyager Celsius and blockfi went under followed by trading firm three arrows Capital thanks to what Nick calls quote remarkably stupid long bets on Tera Luna but the final nail in silvergate coffin came when FTX and spf's Empire Came Crashing Down in November while this was happening companies using silvergate were panicking with many withdrawing funds in quick succession not only that but silvergate own assets were devaluing that's because it had mainly invested in governmen issued treasury bonds and securities which are normally regarded as very low risk however the Federal Reserve had started raising interest rates around this time meaning silvergate was forced to sell assets at a loss in order to honor withdrawals consequently silvergate closed 2022 with a net loss of almost 1 billion today silvergate no longer exists however it continues to face scrutiny for its ties to FDX people wondered how the bank hadn't noticed s spf's Shady activity and these questions quickly got the attention of Elizabeth Warren possibly the world's most anti- crypto politician Warren wrote two angry letters to Alan Lane silvergate CEO accusing the bank of criminal liability due to its relationship with FTX and this caught the attention of the Federal Reserve the FDIC that is the Federal Deposit Insurance Corporation and the OC the office of the controller of the currency I know quite a mouthful anyways they issued a joint statement warning Banks about the risks of serving crypto companies just two days later silvergate downsized and The Regulators followed with a second joint statement silvergate shares crashed and in March 2023 it announced voluntary liquidation and by the way if you're enjoying the video so far liquidate those like subscribe and Bell buttons to help others find it hey man hey what do you do for a living me I'm a uh I'm a crypto YouTuber yeah yes pretty pretty fun job actually [Music] see you what about you what do you do for a living oh me man I check the coin Bureau deals page it's got sign up bonuses of up to $100,000 and trading fee discounts but I mean huge trading fee discounts and exclusive altcoin Alpha in their Subscription Service check it [Music] out now this is where things get really intriguing as Nick explains silvergate decision to voluntarily liquidate was bizarre normally failing Banks go into receivership whereupon Regulators usually the FDIC step in before they're sold off to larger Banks so then why was the decision made to liquidate what if there's more to the story as Nick asks quote what if there's another version of events in which silvergate was a victim of FTX not an accomplice to their crimes more specifically what if silvergate was intentionally killed by the Biden Administration could silvergate settlements with Regulators have been a cover for operation choke point 2. 0 and worst of all did this pressure contribute to the 2023 banking crisis well after weighing up the facts and speaking to various insiders Nick believes this could very well be the case back in early 2023 Nick started hearing from individuals from silvergate Bank Signature Bank Silicon Valley Bank and First Republic Bank all reporting intense pressure from Regulators because of this pressure many crypto-friendly banks simply stopped serving crypto businesses and this is where Nick draws comparisons to the original operation chokepoint of the Obama era and safe to say chokepoint 2.

0 proved effective just one day after silvergate announced it would go into voluntary liquidation Silicon Valley Bank collapsed this was soon followed by Signature Bank going into receivership despite a board member protesting that it was solvent and that the move was politically motivated Nick also spoke to silvergate insiders from whom he learned that the bank was forced to close due to a secretive 15% cap on crypto deposits what's worse is that this deposit limit wasn't even in writing it was imposed verbally which means there's no paper trail how convenient but why comply if this policy was only issued verbally well according to one Insider Regulators can shut down a bank for nearly anything so when they speak banks are forced to listen not only that but the FD had reportedly refused to allow signature to sell its $4 billion in crypto related deposits and rather than allowing these to be acquired along with the company by Flagstar Bank signature was forced to return them to clients now these threats by Regulators were essentially an indirect attack on the crypto industry it's no coincidence that this enforcement destroyed two of the largest crypto-friendly banks in the US and what's crazy is that silvergate was basically sworn to secrecy because certain details were labeled as quote confidential supervisory information or CSI now normally CSI is designed to protect protect Banks from leaks of sensitive information but in this case it was weaponized against them and what's particularly concerning is the source of this policy widely believed to have been Barat ramam merty now for reference ramma merty was the deputy chair of Biden's National Economic Council at the time and was previously the economic policy director on Elizabeth Warren's 2020 presidential campaign today RMA mty is an adviser to Cara Harris's campaign so if you're unsure of what a Harris Administration could mean for crypto this gives you a clue spoiler alert it's not great anyway more evidence to suggest that chokepoint 2. 0 was in full effect can be found in silvergate bankruptcy filing that's because its Chief admin officer elain hetrick explained that while silvergate was struggling in the face of crypto's downturn and interest rate hikes it was still solvent according to Lane the real problems came from regulatory scrutiny of its business model now this is significant because it means that silvergate probably would have survived if it wasn't being squeezed by Regulators this squeeze forced silvergate to move away from crypto clients its biggest customer base and as Nick points out Elaine is legally Limited in what she can reveal but her version of events contradicts the official story outlined by the government accountability office or G AO which doesn't mention regulatory pressures once this is further evidence to suggest that chokepoint 2. 0 was a government-led operation kept secret in order to protect the Biden administration's reputation in the next part of the article Nick highlights how strange it was that silvergate went into voluntary liquidation he explains that he did some deeper digging into this and found that it had only happened a few times over the last 30 years in Nick's view this is further evidence that silvergate downfall was due to Regulators rather than the bank run it suffered shortly before its collapse in fact silvergate had not only survived the bank run but its deposits between Q3 and Q4 of 2022 actually increased in other words things were recovering well however it was that a forementioned 15% deposit cap that ultimately killed silvergate essentially the reason for this was that it rendered silver Gates sen useless because they wouldn't be able to maintain the accounts of crypto firms transacting on the network in turn this significantly lowered silvergate Revenue stream to the point that continuing to support crypto firms was no longer financially viable reportedly silvergate leadership team looked at various ways to keep the bank going but it simply wasn't possible so instead they made the difficult decision to close the bank down in a controlled manner in order to make all depositors whole which they were able to achieve Nick explains that we don't know what would have happened if silvergate were allowed to continue without the 15% cap on crypto related deposits but we do know that from late 2023 large cap cryptos namely BTC rallied and this was reflected in the balance sheets of crypto firms everywhere and according to Nick an Insider said that quote if the 15% limit hadn't been imposed silvergate would be thriving right now given what we've learned so far this would have more than likely been the case but well I guess we'll never know okay in the next part of the article Nick explains that in January 2023 there were three major Banks serving crypto firms silvergate signature and the Metropolitan Commercial Bank there was also Silicon Valley Bank with just one major crypto client usdc issuer Circle by April all four Banks had collapsed leaving a void that other Banks hesitated to fill due to fears of a regulatory backlash however two Banks did try to fill that Gap customer bank and cross river bank lo and behold they were both punished by Regulators cross Riverbank was hit with a consent order in May 2023 and although it didn't mention crypto per se the timing is suspicious customers Bank on the other hand was hit with an enforcement action by the Federal Reserve Bank of Philadelphia in August of this year citing riskmanagement and anti-money laundering issues in the case of the former this was perhaps a warning shot to any banks considering serving the crypto industry for the latter this was a more direct attack on crypto because customers Bank also had its very own instant settlement business that operated 247 much like silvergate sen or signatures Signet but why are Regulators so worried about a 247 settlement service well the answer appears to be fed now for reference fed now is an instant 247 payment service which launched in July 2023 and as you'll have probably guessed is backed by the Federal Reserve other 247 Services could therefore be seen as competitors these restrictions conveniently make it difficult for crypto firms to find a crypto-friendly bank and those that are willing to take them on are slow expensive and only offer basic cash Management Services which essentially prevents them from working around the clock along with the rest of the crypto Market as such users will be forced to find a more suitable alternative and fed now will be the most obvious choice if you need further proof of this then consider that the FDIC has extended operation chokepoint 2.

0 Beyond crypto and has now begun targeting fintech startups too heck they're even using the same tactics instead of collaboratively creating a fair regulatory backdrop Regulators are instead implementing arbitrary sometimes verbal rules that leave banks with no choice but to comply now in the next part of the article Nick examines the settlements silvergate had to pay these included a $20 million fine and a consent order from the California Department of Financial Protection and Innovation or CAD dfpi what an acronym there was also a $43 million fine to the fed and a fine of $50 million to the SEC although for the latter silvergate had already paid $63 million so this wasn't an additional charge despite these fines silvergate still had over $100 million on its balance sheet meaning it wasn't on the verge of collapse and what's crazy is that none of these fines were for anything illegal the sec's case was based on the fact that Alan Lane silvergate aforementioned CEO made some misleading statements about silver Gates Bank secrecy act and anti-money laundering compliance programs this means that Elizabeth Warren's baseless claims of conspiring with FTX were debunked Nick points out that almost every Bank examination finds something that needs needs attention he also notes that Banks aren't expected to identify every criminal although silvergate leaders told him that they regret not detecting ftxs sketchy Behavior but then who doesn't one silvergate executive even said quote in retrospect I think we could have pieced this together and figured it out but this is not a legal failure and we're not required to catch everything notably the SEC weren't able to find anything to prove that silvergate had anything to do with fx's fraudulent activity and in the FTX investigation silvergate was listed as a victim not a co-conspirator Executives from silvergate actually found that the sec's case was an overreach exaggerating minor issues flagged by the fed this is bizarre considering the SEC never actually claimed any fines for its efforts meanwhile the FED settlement was based on a lack of monitoring of internal transactions on the aforementioned silvergate Exchange Network or sen rather than anything illegal in fact the only reason they sued was because the Sen's monitoring system went through an upgrade and experienced an outage what did they upgrade to salana all right relax Soul holders I'm just kidding and for those wondering the settlement from the cad fpi was pretty much the same as the Fed so nothing major there either so then why did three separate Regulators decide to sue silvergate despite it already declaring voluntary liquidations and making depositors whole well the answer seems to be scapegoating you see regardless of who was actually at fault the mere fact that silvergate was made to pay massive fines would make it appear to the general public that silvergate must have been at fault to the untrained eye this was all down to silvergate own mismanagement rather than any regulatory pressure now in the final section of his article Nick explores the relationship between Senator Elizabeth Warren and short seller Mark codes remember how we mentioned that Warren wrote two angry letters well these followed a series of extreme accusations from codes and when we say extreme we mean extreme codes accused silvergate as well as his other favorite Target signature of being quote publicly traded crime scenes allegedly playing host to terrorists drug dealers and human traffickers he's also said that Alan Lane belongs in prison none of these claims appear to be based on any evidence whatsoever codes is a classy guy anyway in her first letter Warren accused silvergate of failing to take control of FTX is unraveling having an ineffective AML program and failing to report suspicious activity to the financial crimes enforcement Network or finsen if acronyms are your thing you've come to the right place today anyway unhappy with silvergate response Warren wrote a second angry letter this time pressuring the federal Home Loans bank or fhlb at that point the fhlb was silvergate Last Hope for liquidity but they Cav to the pressure and rejected the renewal of silvergate monthly facility this essentially rugged silvergate liquidity which Nick says was likely the straw that broke the camels back what's crazy is that Warren acted after codes reached out to her office directly with a slide deck titled quote silvergate 101 codes has also bragged about being the inspiration behind Warren's letters and even supported her in her 2020 presidential campaign this isn't codes' first rodeo either he's also sent memos to the fed the SEC and the FDIC with accusations against silvergate and signature bank now Nick argues that Warren knowingly or not fueled codes' short selling Mission which created the fear that triggered the bank run on silvergate this fear was contagious and ultimately spread to other Banks and this sparked the 2023 banking crisis the worst since the great financial crisis of 2008 just let that sink in and that brings us to the end of Nick's article and we'll remind you that there's a link to the full thing below and it is well worth a read now it's clear that silvergate was a Target serving as a proxy for the rest of the crypto industry it's also fair to say that silvergate wasn't complicit in fx's crimes it was a victim of a regulatory Crackdown aimed at eliminating competition for the new fed now payment system does this mean silvergate was Flawless not at all it should have had stronger AML measures to prevent these issues but as Nick puts it silvergate was an imperfect victim but a victim nonetheless now I should say the only issue we have with this article is that Nick often refers to individuals he's spoken to directly and a lot of them are kept Anonymous this means not many credible sources are given so for now we don't have all the concrete evidence we need to form a definitive conclusion as a rule of thumb if information isn't publicly available it may as well be false this is exactly why we at the coin Bureau only base videos on information that can can be publicly verified that being said the FDX Fiasco is highly controversial so Nick presumably wouldn't have put his reputation on the line for a bit of clickbait and to be fair there's only so much that can be legally revealed anyway but while we don't know every detail this does underscore what this could all mean for the future of crypto if the Democrats win the upcoming election and that's not us being partisan it's merely an observation based on today's findings Elizabeth Warren is crypto's version of Kella devil and Barat Ram's role suggests chokepoint 2.