Silvergate has been responsible amid cryptocurrency collapse, reveals Microstrategy CEO

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Silvergate has been responsible amid cryptocurrency collapse, reveals Microstrategy CEO

Michael Saylor, the founder of Microstrategy and a major Bitcoin (BTC) enthusiast, recently commented on the state of the cryptocurrency industry and certain companies’ performance during the year-long cryptocurrency winter. This was a period that was not only tough on investors but likewise on a lot of the cryptocurrency institutions.

A number of them ended up collapsing owing to the harsh conditions and filing for bankruptcy. Nonetheless, reports by Saylor, one of the more responsible corporations during this time was Silvergate, which managed to persist even when FTX Trading Ltd, one of the world’s largest and most trending exchanges, went down. He stated that he would continue doing business with the crypto-friendly bank.

Microstrategy will keep working with Silvergate

Saylor’s comments regarding Silvergate came after the Justice Department had its fraud unit start probing the bank, reports by the speculation. Allegedly, the JD has been looking into the crypto-friendly bank’s handling of accounts for Sam Bankman-Fried and his firms.

After the  collapse of FTX Trading Ltd, its controversial, and even openly illicit moves became public knowledge. As a consequence, a substantial investigation revolving around Sam Bankman-Fried, the exchange’s previous CEO, and all other enterprises he had any ties to, commenced. The probing of Silvergate — assuming that it is real — does not really come as a surprise, given that the company managed SBF’s corporate accounts.

The fraud probe is seeking potential criminal behavior and any traces of potential wrongdoing in allowing FTX’s deposits. This especially includes user funds, which SBF and other of the company’s executives gambled away in investments. The probe is looking whether any such funds were deposited into Alameda Research — FTX’s sister trading company, which was likewise involved in illicit activities.

The Western elite did not study crypto

As for Silvergate, Saylor stated that he and his company would continue to collaborate with the institution. He said,

The institutions that were improperly constructed collapsed — the Alamedas, the FTXes, the Voyagers, the BlockFis of the world — but in reality, Silvergate was a responsible bank.

Back in 2022, Silvergate announced a $205 Million term loan to Microstrategy’s subsidiary, MacroStrategy LLC. Saylor likewise defended digital assets after Berkshire Hathaway’s Vice Chairman, Charlie Munger, commented on the industry, calling for a ban on the entire industry.

Responding to his comments, Saylor stated that, if Munger was a business leader in Africa, Asia, or South America, and he spent 100 hours studying the issue, he would be a lot more positive  tendency on Bitcoin (BTC) than even he (Saylor) is.

He thinks that many of the hostility toward the cryptocurrency industry in the West comes from the fact that the Western elite did not have the time to study it.




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