Are Crypto Banks Responsible? Silvergate Faces DOJ Investigation Over FTX, MicroStrategy Defends: Responsible Banking
Bloomberg reported, according to sources, that the U.S. Department of Justice's Fraud Section prosecutors are investigating the transactions between the crypto-friendly bank Silvergate and the collapsed exchanges FTX and Alameda Research. Silvergate is under investigation for providing custody accounts to FTX founder SBF, but no illegal activities have been charged at this time. The parties involved have declined to comment.
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MicroStrategy Speaks Out: Silvergate Takes Responsibility
MicroStrategy founder Michael Saylor stated in an interview with CNBC that there are many entrepreneurs in the crypto space who inherit an irresponsible culture to execute good ideas. It requires "adult supervision." However, Silvergate is a responsible bank.
Michael Saylor's statement is backed by the fact that MicroStrategy is also a user of Silvergate. In March 2022, it held $8.2 billion worth of Bitcoin as collateral under "MacroStrategy," with Silvergate and its subsidiary MacroStrategy jointly authorized as the anonymous custodian.
Microstrategy co-founder Michael @Saylor weighs in on FTX and crypto regulation: Crypto has a lot of entrepreneurs who implement good ideas in an irresponsible fashion. It needs is “adult supervision”.@CNBC @MorganLBrennan @CarlQuintanilla @DavidFaber #Crypto pic.twitter.com/3bbm8tF14m
— Squawk on the Street (@SquawkStreet) February 3, 2023
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