How Will the FTX Collapse Affect Silvergate? A Bear and a Bull Debate - Ep. 431

Unchained

Laura Shin

News, Business News, Tech News

4.6 • 1.3K Ratings

🗓️ 13 December 2022

⏱️ 74 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Ram Ahluwalia, CEO and cofounder of crypto-native investment advisor Lumida, and Marc Cohodes, individual investor and former hedge fund manager, have a heated debate about Silvergate, a crypto-friendly bank that plays a key role in integrating crypto with traditional finance and is currently under scrutiny due to its ties with FTX and Alameda. Both Marc and Ram have a vested interest in Silvergate. Marc is shorting the stock, while Ram is longing it. Show highlights: why Silvergate plays such a vital role in the movement of money within the crypto industry whether Silvergate runs proper KYC and AML practices whether Silvergate has a $1 billion hole in its balance sheet whether regulators will go after Silvergate as they are doing with FTX why Marc thinks the FTX collapse wouldn't have happened without Silvergate whether Silvergate was complicit with FTX’s activities or simply negligent why Ram believes this case is different from JPMorgan's involvement with Madoff what regulatory actions might come in the near future for Silvergate why Ram thinks regulators will go to "great lengths" to avoid a bank failure what would it take for Ram and Marc to change their minds Take Unchained's 2022 survey! Unchained is doing its annual survey. Tell us how you think we’re doing and how we could improve, whether it be on the podcast, in the newsletter, or in our premium offering. Looking forward to hearing your thoughts! Thank you to our sponsors! Crypto.com Chainalysis Minima DeFi Saver Guests: Ram: Twitter Ram’s thread on Silvergate Ram’s previous appearances on Unchained: Genesis May Be Facing Bankruptcy. Could It Take DCG Down With It? Why Genesis Could Very Well Be Insolvent, Not Just Illiquid Marc: Twitter Episode links: Class action lawsuit against Silvergate The Block: Silvergate CEO seeks to reassure investors over crypto contagion Letter from Senators Elizabeth Warren, John Kennedy, and Roger Marshall The Guardian: JP Morgan Chase to pay more than $2bn in penalties for Madoff ties The Financial Times: Silvergate: from tiny local lender to bank behind the crypto boom WSJ: Crypto Is Taking a Few Small Banks on a Wild Ride Bloomberg: These Banks Were Left Holding the Bag in Crypto Implosion An Obscure Bank Found Its Key to Success. Then FTX Collapsed CoinDesk: Crypto Bank Silvergate Says Its BlockFi Digital-Asset Deposit Exposure Totals Less Than $20M New York Post: Crypto ‘smart’ money? Big traders fell for Sam Bankman-Fried NBC: Sen. Warren demands answers from Silvergate Bank about its business dealings with FTX Dylan LeClair’s Twitter thread Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Pay all, some of you may have heard that Silvergate Bank, the leading bank for the crypto
0:04.6	industry, is facing challenges after FTX's implosion.
0:08.2	It's one of the most shorted stocks has changed its chief risk officer, which is a role
0:13.7	focused on fraud, and it's been releasing public statements weekly to try to quell the markets.
0:19.0	In this episode, we heard from veteran short seller Mark Cajodes and crypto banking insider
0:24.1	Rahm Alawalia on why, for Mark, he believes that this is only the beginning of Silvergate's
0:30.4	troubles, and why for Rahm, he believes Silvergate won't go down.
0:35.0	It was an intense and fascinating discussion with great points by both sides, I think we'll
0:39.2	have to see how events play out before we can see who was right.
0:42.2	Alright, now onto the show.
0:45.7	Just a quick note before we begin.
0:47.8	Unchained is doing its annual survey.
0:49.6	To surveyMonkey.com slash R slash Unchained 2022, to tell us how you think we're doing and
0:54.8	how we can improve, whether it be on the podcast, in the newsletter, or in our premium offering.
0:59.9	Looking forward to hearing your thoughts.
1:01.6	Again, the link is surveyMonkey.com slash R slash Unchained 2022, and you can also check
1:07.2	the show notes for the link.
1:10.0	Hi everyone, welcome to Unchained, your no hype resource for all things crypto.
1:16.9	I'm your host, Laura Shin.
1:18.8	Author of the Crypto Peans.
1:20.6	I started covering crypto seven years ago, and as the senior editor Forbes was the first
1:24.9	mainstream media reporter to cover cryptocurrency full time.
	...

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