• Silvergate Bank recently announced its liquidation.
• U.S. senator Elizabeth Warren has attributed the bank’s downfall to „crypto risk.“
• Critics are dismissing her opinion as „terribly misinformed.“
Silvergate Bank Announces Liquidation
Silvergate Bank recently announced that it would be voluntarily liquidating and closing its doors after operating for several years in the crypto space. The financial institution was the first of its kind to serve crypto-related businesses and customers, so many in the industry were shocked by the news of its closure.
Elizabeth Warren Blames Crypto Risk
U.S. Senator Elizabeth Warren (D-MA) quickly took to Twitter to express her thoughts on Silvergate Bank’s closure, attributing it to „crypto risk.“ She claimed she had previously warned about Silvergate and expressed disappointment about their demise, which she deemed „predictable.“ However, some critics have dismissed her opinion as „terribly misinformed“ and accused her of tossing out egregious accusations without having a full understanding of the situation at hand.
Crypto Proponents Offer Different Perspectives
In response to Senator Warren’s tweet on Thursday, many crypto proponents offered different perspectives on Silvergate Bank’s downfall that didn’t involve blaming cryptocurrencies or any other form of risk associated with them. Instead, they argued that individuals and businesses involved in running crypto operations should be held accountable for any improper activities or failures instead of placing blame solely on objects such as cryptocurrencies.
Criticism Over Senator’s Misinformation
Critics also argued that Senator Warren is employing a propaganda approach by blaming objects rather than individuals or businesses for failure, thus absolving those responsible from responsibility or accountability for their actions. This sentiment was echoed by many who responded to her tweet with criticism over what they perceived as misinformation from the Massachusetts senator.
Conclusion
Ultimately, Silvergate Bank’s liquidation has caused shockwaves throughout the crypto space due to its significance in terms of being one of the first banks dedicated exclusively to serving cryptocurrency customers and businesses. While U.S senator Elizabeth Warren has blamed this outcome on „crypto risk,“ many crypto proponents disagree with this assessment and are calling for accountability from those actually responsible for running operations involving cryptocurrencies instead of simply blaming an object itself for failure or wrongdoing committed by humans involved in these activities.