Silvergate Ex-CEO Blames Regulators for Bank's Demise

Former Silvergate Bank CEO Alan Lane claims the bank's 2023 voluntary wind-down was not due to internal weaknesses but rather pressure from regulators and politicians.

Lane, in an inaugural post on his Substack, said that despite facing heavy withdrawals, Silvergate had sufficient liquid resources to withstand them. He pointed out that the bank sold $5.2 billion of debt securities and recorded a loss of $718 million in its January 2023 business update.

The update also showed that digital asset deposits fell by 68% from $11.9 billion to $3.8 billion over the fourth quarter of 2022, leaving Silvergate with $4.6 billion in cash and equivalents at year-end.

Lane's claims contrast with federal regulators' accounts, which emphasize factors such as concentrated crypto deposits, funding and governance risks, and compliance shortcomings.