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Elizabeth Warren blames ‘crypto risk’ for Silvergate bank liquidation, critics dismiss senator’s claims as ‘terribly misinformed’

After Silvergate Bank announced its voluntary liquidation, US Senator Elizabeth Warren blamed the financial institution’s demise on “crypto risk.” According to Warren, she had previously warned about Silvergate. However, some critics dismiss Warren’s opinion as “terribly misinformed” and claim that she “makes outrageous allegations”.

Crypto advocates offer different perspectives on Silvergate Bank’s demise after Elizabeth Warren blew up the so-called “crypto risk.”

Hours after Silvergate Bank announced its liquidation, US Senator Elizabeth Warren (D-MA) tweeted about the demise of the financial institution. Warren designated cryptocurrencies again as risky and expressed disappointment at the failure of Silvergate, which she felt was “predictable”.

On March 9, US Senator Elizabeth Warren tweeted: “I have warned of Silvergate’s risky, if not illegal, activities – and found serious lack of due diligence. Now customers need to be made sane and regulators should act on crypto risk.” The Massachusetts Senator’s statement drew criticism almost immediately after it was released. “You caused a bank run with false accusations and now you claim you predicted it – Olympic-level mental gymnastics,” one person said answered to Warren’s tweet.

Elizabeth Warren blames ‘crypto risk’ for Silvergate bank liquidation, critics dismiss senator’s claims as ‘terribly misinformed’, Crypto Trading News

The person’s comment on Warren starting the Silvergate bank run comes from the letter Senator Warren co-wrote with Senators Roger Marshall (R-KS) and John Kennedy (R-LA). The bipartisan letter contained numerous allegations as it asked for information on a “massive crypto scandal.” In response to Warren’s tweet on Thursday, one person asked the politician, if she had ever managed not to be “terribly misinformed while throwing outrageous allegations?”

Some critics argue that Warren is employing the age-old propaganda that blames failures on objects, rather than individuals and corporations. This approach is comparable to inanimate weapons causing violence themselves, a pencil autonomously writing a hateful letter, or cryptocurrencies harming investors rather than crypto company operators. Many critics on Twitter disagreeing with Senator Warren’s views on the matter. In response to their allegations, Crypto CFA Ram Ahluwalia bot a different perspective on the situation in Silvergate.

“Silvergate, the first crypto bank, faced a bank run that led to its demise,” Ahluwalia wrote. “Despite allegations related to AML, it was not these issues that ultimately led to the demise of [Silvergate Bank]. Responsibility for banking supervision lies with the executive branch, but this process has been abandoned. A senator’s letter, amplified by social media, eroded public confidence in Silvergate and eventually led to a crisis of confidence.”

Checking Warren’s Twitter thread, there appears to be little to no support for her comment on the post, despite the tweet garnering 942 likes and being viewed more than 724,000 times. Most replies to Warren’s tweet express disgust for their comments on this topic. As usual, the politician’s actions have been compared to politicians breaking their legs to sell crutches.

“That’s why I hate political self-aggrandizement at the expense of others,” said one person told Labyrinth. “Crypto [and] Blockchain solves many problems. Unfortunately, it doesn’t solve the posturing, vested interests and fear-mongering by elected officials. Thank you for making it harder for honest hardworking people.”

What do you think of Senator Warren’s views on cryptocurrencies and their role in Silvergate Bank’s demise? Do you think their allegations are justified or misguided and harmful to the institution? Share your thoughts in the comments below.

Elizabeth Warren blames ‘crypto risk’ for Silvergate bank liquidation, critics dismiss senator’s claims as ‘terribly misinformed’, Crypto Trading News

Jamie Redman

Jamie Redman is the news director at News and a Florida-based financial technology journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about today’s emerging disruptive protocols.

photo credit: Shutterstock, Pixabay, WikiCommons

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Source: Crypto News Deutsch

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