Silvergate ex-CEO blames Biden pressure for bank’s 2023 wind-down

Former Silvergate Bank CEO Alan Lane asserted that political pressure from the Biden administration was the catalyst for the crypto-focused lender's liquidation in 2023. Lane argued that despite the bank's solvency after managing withdrawals equivalent to 70% of its demand deposits in Q4 2022, a "coordinated attack" by the administration ultimately forced Silvergate to wind down.

During the fourth quarter of 2022, Silvergate's digital asset deposits declined by 68%, from $11.9 billion to $3.8 billion. The bank sold $5.2 billion of debt securities that year, resulting in a $718 million loss. As of year-end, Silvergate held $4.6 billion in cash and equivalents. Lane's account contributes to the ongoing discussion about whether U.S. agencies targeted crypto companies' banking access.

However, it contrasts with federal findings that attributed the bank's liquidation to its concentrated deposit base, funding risks, and governance and compliance weaknesses. The Federal Reserve Board's Office of Inspector General concluded that Silvergate's reliance on crypto depositors, rapid expansion, and complex funding risks led to its liquidation, citing significant governance and risk management issues.

In July 2024, the Securities and Exchange Commission (SEC) accused Silvergate, Lane, and former CRO Kathleen Fraher of misleading investors about the bank's AML program and monitoring of crypto customers, citing the bank's failure to detect suspicious transactions totaling nearly $9 billion. Lane settled the SEC's charges without admitting or denying the allegations, facing a $1 million penalty and a five-year bar from serving as an officer or director.

The Federal Reserve also fined Silvergate $43 million for transaction-monitoring shortcomings. In April 2025, government agencies withdrew the interagency crypto-risk statements issued early in 2023, which advised banks to adopt a cautious stance on crypto-related activities.