Posted on 12/06/2022 8:43:02 AM PST by Kaiser8408a
Always behind the curve, US Senators (Warren, Marshall, Kennedy) want to get to the bottom of Silvergate’s decline and its relationship with Sam Bankman-Fried and FTX. This reminds me of the 2008 financial crisis when The Federal Reserve claimed they never saw it coming. Despite the data.
But back to crypto bank Silvergate.
Crypto bank Silvergate Capital Corp. was asked by three US Senators to release all records about transfers of funds for the collapsed FTX empire of Sam Bankman-Fried.
“Your bank’s involvement in the transfer of FTX customer funds to Alameda reveals what appears to be an egregious failure of your bank’s responsibility to monitor for and report suspicious financial activity carried out by its clients,” Senators Elizabeth Warren, Roger Marshall and John Kennedy wrote in a letter released Tuesday.
SNot surprisingly, Silvergates’ stock price is closely linked to cryptocurrency Bitcoin.
The letter cite concerns about the banking services that Silvergate provided to both FTX as well as Bankman-Fried’s trading firm, Alameda Research. It says the arrangement between FTX and Alameda depended on Silvergate’s depository services and puts the bank “at the center of the improper transmission of FTX customer funds.”
“Silvergate’s failure to take adequate notice of this scheme suggests that it may have failed to implement or maintain an effective anti-money laundering program, as required under the Bank Secrecy Act,” the Senators said.
Perhaps Silvergate should be renamed Silverfish. But seriously, no US Senator or DC regulator saw the following chart?? Bitcoin and other cryptos have been clobbered in 2022 as The Fed tightens monetary policy to combat inflation.
Here is our regulator, SEC’s Gary Genslar, keeping an eye on cryto exchanges like FTX.
Maybe US Senators and DC regulators thought Silvergate is a silverfish.
(Excerpt) Read more at confoundedinterest.net ...
Well he Bribed the right people
He paid protection money to the Dems. If he’s not protected, then other people may stop making the required payments. It’s like paying the mob for “fire insurance”.
Senators will have a chance to bloviate and “express outrage”. They’ll read statements that their aides prepared for them, and then go back to day drinking and rousting donors.
blah blah.
Ask Mitch McConnell.
“Silvergate’s failure to take adequate notice of this scheme suggests that it may have failed to implement or maintain an effective anti-money laundering program, as required under the Bank Secrecy Act,” the Senators said.
~snip
Here is our regulator, SEC’s Gary Genslar, keeping an eye on cryto exchanges like FTX.”
Wasn’t SBF’s nerdy girlfriend’s father once Gary Gensler’s boss at MIT? Both her and SBF’s family are highly connected with the DNC and the regulatory agencies. I’m wondering if this scam was intentionally designed to not only finance the Dems, but to destroy the crypto market ahead of them coming out with a Central bank digital currency. This provides the excuse they needed to highly regulate crypto, and will probably result in many of these scam crypto exchanges going under.
He should be brought in, but it is not trivial.
He is hiding out in the Bahamas (if he is still there). The Bahamas have an extradition treaty, but it is fair to assume he has spread a lot of bribes around so the local officials will warn him and maybe aid his escape.
“Bitcoin and other cryptos have been clobbered in 2022 as The Fed tightens monetary policy to combat inflation.”
Which is quite funny to me, since if crypto was an actual viable alternative to fiat currency it would be in demand as inflation rises and people seek safe harbors from devalued fiat money. Instead we see the opposite.
Yup those thinking of crypto as some sort of “digital gold” are in for a rude awakening.
The Regulators were possibly well funded by FTX.
My understanding is that he is offshore, so there are jurisdictional problems with getting ahold of him physically. They’re clearly preparing a case, and will arrest him once those indictments are ready.
As to the question of “where were the regulators” the whole appeal of “the crypto space” was that it didn’t need regulators, because it was so clean and free from government interference.
I just have no sympathy at all for any adult that got caught in this swindle. None. You knew what you were doing was insane, and you did it anyway. Sorry Charlie.
What regulators? Under what regulatory regime did these “currencies” function? The answer is none, and now you see why regulation can be a good thing.
Yes
Because he took the “all of government” approach. https://www.opensecrets.org/orgs/ftx-us/summary?id=D000073694
He gave money to all of government.
But if you look up his personal donations instead of his corporations donations you’ll see that he gave about $40,000,000 to liberal PACs and only about $50,000 to conservative PACs.
Whatever. Seven million in "corporate" donations and that was other people's money. Not too Brilliant if you can't see why he's doing interviews with NYT instead of sitting in a jail cell.
He’s in the Bahamas. I suspect that’s the main reason he hasn’t been arrested. But he will be eventually.
On Friday, 12/2/22 healthcare tech startup CEO Will Mandis tweeted: “SBF donating $40m to not go to jail for stealing $10b+ is one of the highest ROI trades of all time.”
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.