Elizabeth Warren Blames ‘Crypto Risk’ for Silvergate Bank’s Liquidation, Critics Dismiss Senator’s Claims as ‘Terribly Misinformed’
After Silvergate Bank announced its voluntary liquidation, US Senator Elizabeth Warren attributed the fall of the financial institution to “crypto risk.” According to Warren, she previously warned about Silvergate. However, some critics dismiss Warren’s opinion as “terribly misinformed” and argue that she “makes egregious accusations”.
Crypto advocates offer different perspectives on the collapse of Silvergate Bank after Elizabeth Warren blew up the so-called ‘crypto risk’
Hours after Silvergate Bank announced its liquidation, US Senator Elizabeth Warren (D-Massachusetts) tweeted on the liquidation of a financial institution. Warren once again called cryptocurrencies risky and expressed her disappointment at Silvergate’s failure, which she called “predictable.”
On March 9, U.S. Senator Elizabeth Warren tweeted: “I have warned about the risky, if not illegal, activities of Silvergate – and have identified serious due diligence deficiencies. Customers must now be healthy and regulators must take action against crypto risk.” The Massachusetts senator’s statement was met with criticism almost immediately after publication. “You triggered a bank run with false accusations, and now you claim to have predicted it—Olympic-level mental gymnastics,” said one person. answered to Warren’s tweet.
This man’s comment about Warren launching the Silvergate raid stems from a letter that Senator Warren wrote along with Senators Roger Marshall (R-Calif.) and John F. Kennedy (R-LA). bipartisan writing contained numerous allegations as it requested information about a “massive crypto scandal”. In response to Warren’s tweet on Thursday, one person asked politics, if it ever managed to “not be terribly misinformed by making egregious accusations?”
Some critics argue that Warren is using age-old propaganda that puts the blame for failures on objects rather than individuals and businesses. This approach is akin to an inanimate weapon that in itself causes violence, a pencil that autonomously writes a hate letter, or cryptocurrencies that harm investors, not crypto business operators. Many critics on Twitter disagree with Senator Warren’s views on the matter. In response to her accusations of crypto CFA Ram Ahluwalia offered a different perspective on the situation at Silvergate.
“Silvergate, the first crypto bank, faced a massive withdrawal of funds, which led to its collapse,” said Ahluwalia. wrote. “Despite allegations of anti-money laundering, it was not these issues that ultimately caused the decline [Silvergate Bank]. Responsibility for banking supervision lies with the executive branch, but this process has been interrupted. The senator’s letter, inflated on social media, undermined public confidence in Silvergate, ultimately leading to a crisis of confidence.”
After examining Warren’s Twitter thread, it looks like her comment on the post is largely unsupported, despite the fact that the tweet received 942 likes and was viewed over 724,000 times. Most replies to Warren’s tweet express disgust for her remarks on the matter. As usual, criticism of the politician’s actions compared them to politicians breaking their legs to sell crutches.
“That’s why I hate political self-aggrandizement at the expense of others,” said one person. said Warren. “Crypto [and] Blockchain solves many problems. Unfortunately, this does not solve the problem of posturing, vested interests and fear-mongering by elected officials. Thank you for making life difficult for honest, hardworking people.”
What do you think of Senator Warren’s views on cryptocurrencies and their role in the collapse of Silvergate Bank? Do you think her accusations are justified, or do you think they are wrong and harmful to the institution? Share your opinion in the comments below.
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