Exchange Ranking
Top Exchanges
24h Volume Ranking
Popularity Ranking
Exchange BTC Balance
Proof of Reserves
Decentralized Exchanges
Funding Rate
Funding Heatmap
Liquidation Data
Max Pain
Long/Short Ratio
Whale L/S Ratio
Binance/Okex/Huobi L/S
Bitfinex Margin L/S
ETF Tracker
Solana ETF
XRP ETF
Hong Kong ETF
Bitcoin Treasuries
Crypto Reversal
Ethereum Reserves
HyperLiquid Wallet Analysis
Hyperliquid Whale Watch
Large Transactions
On-chain Movement
Bitcoin ROI
Stablecoin Market Cap
Options Analysis
News
Articles
Economic Calendar
Features
Wallet
Contract Calculator
Security
Collections
Watchlist
FollowingFormer Silicon Valley Bank CEO: The Biden administration has pressured crypto lenders to voluntarily liquidate
Alan Lane, former CEO of Silvergate Bank, said political and regulatory pressure from the Biden administration has led the cryptocurrency-focused lender to voluntarily liquidate in 2023. He argued that the bank remained solvent even after a run on deposits.
Lane pointed out in his first Substack platform article released on Tuesday that Silicon Valley banks could have continued to operate after meeting withdrawal needs equivalent to 70% of its demand deposits in the fourth quarter of 2022. He believes that the Biden administration's "coordinated attack" ultimately led to the bank's liquidation and said the bank chose the liquidation process "in the face of political pressure."
Lane said that Silicon Valley banks hold sufficient liquid assets to sell or pledge as collateral during periods of large withdrawals. According to the bank's operating update report released in January 2023, digital asset deposits fell 68% to $3.8 billion from $11.9 billion in the quarter. Silicon Valley Bank sold $5.2 billion in debt securities, recording a loss of $718 million. The bank said it had $4.6 billion in cash and equivalents at the end of the year.
Lane's statement adds first-hand testimony to the debate about whether U.S. regulators are trying to restrict cryptocurrency companies 'access to banking services. However, this is inconsistent with findings from federal agencies, which attributed banks 'liquidations to their concentrated deposit base, financing risks, and weaknesses in governance and compliance.
Regulators point to risk management and compliance shortcomings
A September 2023 review report by the Federal Reserve's Office of the Inspector General pointed out that Silicon Valley banks 'dependence on cryptocurrency depositors, rapid growth and multiple levels of financing risks led to their liquidation. The report also pointed to significant weaknesses in corporate governance and risk management and said inspectors could have taken more proactive and decisive action.
Lane said no regulator has proven that Silicon Valley banks 'anti-money laundering (AML) controls have failed. In July 2024, the U.S. Securities and Exchange Commission (SEC) accused Silicon Valley Capital, Ryan and former chief risk officer Kathleen Fraher of misleading investors into misunderstanding banks 'anti-money laundering programs and cryptocurrency customer monitoring.
Regulators claim that Silicon Valley Bank's automated systems failed to monitor more than $1 trillion in transaction logs and that the bank failed to detect nearly $9 billion in suspicious transfers between FTX entities. Ryan reached a settlement with the SEC, did not admit or deny the charges, agreed to pay a $1 million fine and accept a five-year ban on executive and director service. In addition, the Federal Reserve fined Silicon Valley Bank $43 million for flaws in transaction monitoring.
Lane also cited the inter-agency cryptocurrency risk statement released in early 2023 as evidence of pressure on the industry. The statement urged banks to be cautious about cryptocurrency-related activities, although the Federal Reserve said it did not ban or encourage any specific customer group. In April 2025, the government agency withdrew these statements.
