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Silvergate Bank was once crypto’s most important banking partner, handling billions in deposits from the biggest players in the industry. Then, FTX collapsed—and everything changed.
In this episode of Unchained, Mike Lempres, former chairman of Silvergate, talks about how Silvergate grew into a banking giant for crypto, why Washington suddenly turned against them—even after they survived the FTX crisis, and whether Operation Choke Point 2.0 was real.
Plus, did short sellers and politicians work together to tank Silvergate’s stock? And what does the future look like for banks that want to serve crypto?
This is part of the inside story of one of the biggest banking collapses in crypto history.
Show highlights:
- How Mike’s background in banking led him to work in crypto
- Why banking has always been a challenge for crypto companies
- How Silvergate Bank got involved so much with the industry and how it achieved “tremendous growth”
- The “magic” of the Silvergate Exchange Network (SEN)
- Why Mike believes Silvergate’s problem was not banking regulators, but D.C. politics
- How everything changed after the FTX collapse
- Whether SEN is a valuable asset for a bank to have
- Why Mike believes that Operation Choke Point 2.0 is real
- Whether short sellers worked with politicians to tank Silvergate
- How Mike thinks that banks could service the crypto industry
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EPISODE TRANSCRIPTGuest
- Mike Lempres, Former Chairman of Silvergate Bank
Links
- Unchained:
- Why the new FDIC Leadership Isn’t Convinced Operation Chokepoint 2.0 Exists
- Regulators Are Limiting Banks Serving Crypto Clients. Does That Violate the Law?
- Rep. French Hill Says He’d Investigate Operation Choke Point 2.0 as Financial Services Chair
- Are Regulatory Failures to Blame for Crypto Banking Issues?
- Caitlin Long on Why Operation Choke Point 2.0 Has Bankers Nervous
- Ahead of Debanking Hearings, Industry Is Divided on Political Strategy
- Caitlin Long on Why the Fed’s Rejections of Custodia Bank Seem Politically Motivated
- How Will the FTX Collapse Affect Silvergate? A Bear and a Bull Debate