Silvergate ex-CEO blames Biden administration for bank's liquidation

September 9, 2026 at 03:30 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Silvergate's former chief executive Alan Lane says political pressure from the Biden administration forced the crypto-focused bank to liquidate despite remaining solvent after 70% deposit withdrawals. The Federal Reserve's inspector general attributed the failure to concentration in crypto deposits and governance weaknesses. Crypto firms now seek federal trust-bank charters under OCC supervision.

Key Facts

Silvergate survived withdrawals of roughly 70% of its demand deposits in late 2022, according to former CEO Alan Lane.
Silvergate announced voluntary liquidation on March 8, 2023, and completed it by July 2024, repaying all customer deposits.
The Federal Reserve fined Silvergate $43 million for anti-money-laundering noncompliance.
Crypto companies are now obtaining federal trust-bank charters that place custody businesses under the Office of the Comptroller of the Currency.
The Federal Reserve's inspector general attributed Silvergate's failure to concentration in crypto-industry depositors, rapid growth, funding risks, and governance weaknesses.

Lane's Account

Alan Lane, Silvergate's former chief executive, said the bank remained solvent and liquid after the late-2022 withdrawals and could have continued serving customers. He attributed the decision to announce liquidation on March 8, 2023, to political and regulatory pressure from the Biden administration. Lane's account, published Sept. 8, raises questions about how much protection a federal bank charter actually provides crypto companies.

Federal Reserve Findings

The Federal Reserve's inspector general offered a different explanation in its September 2023 review. It attributed the liquidation to concentration in crypto-industry depositors, rapid growth and funding risks, alongside significant weaknesses in governance and risk management. The Fed confirmed in July 2024 that Silvergate had completed its liquidation, repaid all customer deposits and ceased functioning as a bank. The Fed separately fined Silvergate $43 million for anti-money-laundering noncompliance.

Trust-Bank Charter Shift

More than three years after Silvergate's wind-down, crypto companies are obtaining federal trust-bank charters that put their custody businesses directly under the Office of the Comptroller of the Currency. Federal trust charters provide an established legal framework for custody, the business of safeguarding customer assets. They also create a direct supervisory relationship with Washington and can leave firms dependent on other banks for cash. Silvergate was already subject to federal oversight through the Fed and its San Francisco Reserve Bank, while newer firms choose a different banking model and a different federal supervisor.