Silvergate Bank recently said it’s going to shut down its business. Senator Elizabeth Warren believes the bank failed because of “crypto risk.” She had previously given a warning about Silvergate, but some people don’t agree with her. They think she is wrong and making false accusations.
Senator Elizabeth Warren
After Silvergate Bank announced it was shutting down, Senator Elizabeth Warren tweeted about the bad news. She said she wasn’t surprised because of crypto-currencies being too risky and that’s why the bank ended up failing.
On March 9th, U.S. Senator Elizabeth Warren tweeted that some activities done by a company called Silvergate were really risky and might even be against the law. She also said that customers must receive compensation for the harm caused and that the government should make sure these risks don’t continue happening in the future. After she shared her opinion on this matter, many people criticized her point of view on it with one person saying it was as if she was making up wrong accusations while also claiming they would cause bad things to happen.
Senator Warren and two other senators, Roger Marshall and John Kennedy, wrote a letter which had many accusations in it. These accusations were directed at a big crypto scandal. Someone asked Senator Warren on Twitter if she was sure that the things she was saying and accusing were true.
Some people think that Senator Warren is saying that some objects or things can cause failure, like a gun doing violence on its own or a pencil writing something mean. But other people don’t believe this and said so on Twitter. Someone named Ram Ahluwalia offered a different idea about the issue of Silvergate Cryptocurrencies.
Silvergate Bank was the first cryptocurrency bank, but it had a bank run that lead to its closing. This did not have anything do with money laundering issues even though those were being talked about. It was all because of a senator’s letter and how it was shared on social media. The letter caused people to lose trust in Silvergate and this started a chain reaction until the bank closed down.
When we looked at Warren’s Tweet, not many people seemed to agree with her opinion. Even though the post got 942 likes and over 724,000 views, most of the replies were negative. People made jokes about politicians being able to make money by causing problems and then offering solutions.
Someone said to Warren, “It’s wrong for politicians to boost themselves up by putting others down. Crypto and blockchain technology could help a lot of people, but the elected officials are being selfish and scaring everyone instead.” He thanked Warren for making life harder for the honest people who work hard.
What do you think about Senator Warren’s opinion on digital currencies and how it related to the downfall of Silvergate Bank? Do you believe her statements were right, or wrong and bad for the company? Let us know in the comments below.