๐Crypto-friendly Silvergate Bank went belly-up this year, and the Fed's inspectors say it's due to risky crypto deposits and nepotism! ๐ฑ In a nutshell:
- Silvergate shifted focus to crypto clients in 2013, ballooning from $1B in deposits in 2017 to $16B by 2021 ๐
- The bank became a single-industry lender, with most customer deposits uninsured and non-interest bearing ๐ฆ
- Collapse of FTX crypto exchange in 2022 exposed Silvergate's over-reliance on crypto ๐ฅ
- Nepotism in senior management led to ineffective risk management ๐คฆโโ๏ธ
- Silvergate voluntarily liquidated in March 2023, avoiding a technical "failure" ๐งจ
Risky business indeed! ๐ผ๐ฅ
- Silvergate shifted focus to crypto clients in 2013, ballooning from $1B in deposits in 2017 to $16B by 2021 ๐
- The bank became a single-industry lender, with most customer deposits uninsured and non-interest bearing ๐ฆ
- Collapse of FTX crypto exchange in 2022 exposed Silvergate's over-reliance on crypto ๐ฅ
- Nepotism in senior management led to ineffective risk management ๐คฆโโ๏ธ
- Silvergate voluntarily liquidated in March 2023, avoiding a technical "failure" ๐งจ
Risky business indeed! ๐ผ๐ฅ