PANews reported on October 3 that a report from the Federal Reserve Office of Inspector General (OIG) showed that Federal Reserve inspectors did not sound the alarm and allowed Silvergate Bank to take potentially fatal risks during its transformation from a community bank to a crypto bank. Given the bank's unfettered growth, regulators should have taken more active and decisive supervisory actions to escalate several issues. In addition, Silvergate's problems also include its "inefficient" senior management, which is plagued by nepotism. "The bank's corporate governance and risk management capabilities have not kept pace with its rapid growth and increasingly complex and changing risk profile," the report concluded.