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Silvergate has been responsible amid crypto collapse, says Microstrategy CEO

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Silvergate has been responsible amid crypto collapse, says Microstrategy CEO
Silvergate has been responsible amid crypto collapse, says Microstrategy CEO

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Michael Saylor, the founder of Microstrategy and a major Bitcoin enthusiast, recently commented on the state of the crypto industry and certain companies’ performance during the year-long crypto winter. This was a period that was not only tough on investors but also on many of the crypto institutions.

A number of them ended up collapsing due to the harsh conditions and filing for bankruptcy. However, according to Saylor, one of the more responsible companies during this time was Silvergate, which managed to persist even when FTX, one of the world’s largest and most popular exchanges, went down. He said that he would continue doing business with the crypto-friendly bank.

Microstrategy will keep working with Silvergate

Saylor’s comments regarding Silvergate came after the Justice Department had its fraud unit start probing the bank, according to the rumors. Allegedly, the JD has been looking into the crypto-friendly bank’s handling of accounts for Sam Bankman-Fried and his firms.

Following the collapse of FTX, its controversial, and even openly illicit moves became public knowledge. As a consequence, a massive investigation revolving around Sam Bankman-Fried, the exchange’s former CEO, and all other businesses he had any ties to, commenced. The probing of Silvergate — assuming that it is real — does not really come as a surprise, given that the company managed SBF’s corporate accounts.

The fraud probe is seeking potential criminal behavior and any traces of potential wrongdoing in allowing FTX’s deposits. This especially includes user funds, which SBF and other of the company’s executives gambled away in investments. The probe is looking whether any such funds were deposited into Alameda Research — FTX’s sister trading company, which was also involved in illicit activities.

The Western elite did not study crypto

As for Silvergate, Saylor said that he and his company would continue to collaborate with the institution. He said,

The institutions that were improperly constructed collapsed — the Alamedas, the FTXes, the Voyagers, the BlockFis of the world — but in fact, Silvergate was a responsible bank.

Back in 2022, Silvergate issued a $205 million term loan to Microstrategy’s subsidiary, MacroStrategy LLC. Saylor also defended digital assets after Berkshire Hathaway’s Vice Chairman, Charlie Munger, commented on the industry, calling for a ban on the entire industry.

Responding to his comments, Saylor said that, if Munger was a business leader in Africa, Asia, or South America, and he spent 100 hours studying the problem, he would be a lot more bullish on Bitcoin than even he (Saylor) is.

He believes that a lot of the hostility toward the crypto industry in the West comes from the fact that the Western elite did not have the time to study it.

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