A Conversation with Bing: What is your opinion on the collapse of Silvergate, the bank that supported crypto businesses?

Response from Bing

I think the collapse of Silvergate is a sad and unfortunate event for the crypto industry and its customers. Silvergate was a pioneer in providing banking services to crypto-related businesses and individuals, and it had a unique product called the Silvergate Exchange Network (SEN), which enabled fast and cheap transfers of fiat and crypto¹. However, Silvergate faced a lot of challenges, such as rising interest rates, regulatory pressures, and the bankruptcy of FTX, one of its major clients⁶. These factors led to a bank run, where customers withdrew their deposits, and Silvergate had to wind down its operations and liquidate the bank¹. I hope that Silvergate’s customers will be able to recover their funds and find alternative banking solutions. I also hope that the crypto industry will learn from this experience and improve its risk management and resilience.

Source: Conversation with Bing, 3/11/2023

(1) Crypto Crash: Key Bank Silvergate to Close After FTX Collapse. https://markets.businessinsider.com/news/stocks/crypto-crash-silvergate-bank-shut-down-liquidate-stock-market-news-2023-3 Accessed 3/11/2023.
(2) Crypto Crash: Key Bank Silvergate to Close After FTX Collapse. https://markets.businessinsider.com/news/stocks/crypto-crash-silvergate-bank-shut-down-liquidate-stock-market-news-2023-3 Accessed 3/11/2023.
(3) Crypto-friendly lender Silvergate collapses. https://www.msn.com/en-us/money/markets/crypto-friendly-lender-silvergate-collapses/ar-AA18nQ7l Accessed 3/11/2023.
(4) Bitcoin tumbles, as Silvergate Bank’s collapse highlights the biggest threat to U.S. crypto industry. https://www.msn.com/en-us/money/companies/bitcoin-tumbles-as-silvergate-bank-s-collapse-highlights-the-biggest-threat-to-u-s-crypto-industry/ar-AA18qpiR Accessed 3/11/2023.
(5) Crypto-friendly bank Silvergate to wind down after FTX blow-up. https://news.yahoo.com/crypto-friendly-bank-silvergate-wind-073656197.html Accessed 3/11/2023.
(6) Crypto-friendly lender Silvergate collapses | CNN Business. https://www.cnn.com/2023/03/08/business/silvergate-winds-down-crypto/index.html Accessed 3/11/2023.

To summarize, I think it is a sad and unfortunate event for the crypto industry and its customers, and I hope they will be able to recover and find alternative solutions. I also think that the collapse of Silvergate shows the need for better risk management and regulation in the crypto space.

Source: Conversation with Bing, 3/11/2023

(1) Crypto-friendly lender Silvergate collapses | CNN Business. https://bing.com/search?q=collapse+of+Silvergate Accessed 3/11/2023.
(2) Breaking The Buck: Stablecoins Depeg In Wake Of SVB And Silvergate Collapse. https://www.forbes.com/sites/digital-assets/2023/03/11/breaking-the-buck-stablecoins-depeg-in-wake-of-svb-and-silvergate-collapse/ Accessed 3/11/2023.
(3) How Silvergate’s Crypto Collapse Differed From Silicon Valley Bank’s: No Bailout. https://www.msn.com/en-us/money/markets/how-silvergate-s-crypto-collapse-differed-from-silicon-valley-bank-s-no-bailout/ar-AA18tNo8 Accessed 3/11/2023.
(4) Silvergate and Silicon Valley Bank show the risks of banks concentrating in one area. https://www.cnbc.com/2023/03/11/silvergate-and-silicon-valley-bank-show-the-risks-of-banks-concentrating-in-one-area.html Accessed 3/11/2023.
(5) Cryptocurrency Stocks Fall After Silvergate Decides To Close Down. https://www.ndtv.com/business/cryptocurrency-stocks-fall-after-silvergate-decides-to-close-down-3849336 Accessed 3/11/2023.
(6) SVB, Silvergate Implosion Sparks Financial System Fears. https://www.businessinsider.com/svb-silvergate-chaos-financial-crisis-concerns-investors-silicon-valley-collapse-2023-3 Accessed 3/11/2023.

What can you do if you are a customer of Silvergate?

If you are a customer of Silvergate, you should have received a notice from the bank about its wind down and liquidation plan. According to the bank, the plan includes “full repayment of all deposits” and the company is also considering how to resolve claims and preserve the residual value of its assets⁵. However, you may face some delays or difficulties in accessing your funds or transferring them to another bank. You may also want to look for alternative banking solutions that are crypto-friendly or compliant with the regulations in your jurisdiction. You can also contact the bank’s customer service or the Federal Deposit Insurance Corporation (FDIC) for more information or assistance.

Source: Conversation with Bing, 3/11/2023

(1) Crypto-friendly bank Silvergate to wind down after FTX blow-up. https://techcrunch.com/2023/03/08/crypto-friendly-bank-silvergate-to-wind-down-after-ftx-blow-up/ Accessed 3/11/2023.
(2) Sen. Warren demands answers from Silvergate Bank about its business …. https://bing.com/search?q=customer+of+Silvergate Accessed 3/11/2023.
(3) Silvergate and Silicon Valley Bank show the risks of banks concentrating in one area. https://www.cnbc.com/2023/03/11/silvergate-and-silicon-valley-bank-show-the-risks-of-banks-concentrating-in-one-area.html Accessed 3/11/2023.
(4) Silvergate Throws In The Towel, Crypto Bank Will Wind Up Business After Customers Flee. https://www.forbes.com/sites/digital-assets/2023/03/08/silvergate-throws-in-the-towel-crypto-bank-will-wind-up-business-after-customers-flee/ Accessed 3/11/2023.
(5) San Diego’s Silvergate Bank to close because of crypto losses. https://www.msn.com/en-us/money/markets/san-diegos-silvergate-bank-to-close-because-of-crypto-losses/ar-AA18nQGW Accessed 3/11/2023.
(6) Silvergate Bank folds, sparking a wave of finger-pointing and panic …. https://www.kitco.com/news/2023-03-09/Silvergate-Bank-folds-sparking-a-wave-of-finger-pointing-and-panic-selling.html Accessed 3/11/2023.