Silvergate ex-CEO blames Biden pressure for bank’s 2023 wind-down
Former Silvergate Bank CEO Alan Lane wrote in an inaugural Substack post that political and regulatory pressure from the Biden administration forced the crypto-focused lender to wind down in 2023, despite his view that the bank remained solvent after a large withdrawal wave. Lane said Silvergate could have met withdrawals equal to about 70% of demand deposits in late 2022 and pointed to government messaging on crypto as part of a "coordinated attack" that made continued operation untenable.
Why It Matters
Lane's first-hand account feeds into an ongoing debate over whether U.S. regulators and officials effectively restricted crypto companies' access to banking, a question that contrasts with federal reviews that attributed Silvergate's failure to concentrated deposits, funding risks and governance weaknesses.
Key Facts
- Claim by Alan Lane: Said a 'coordinated attack by the Biden Administration' pressured Silvergate into liquidation; made the claim in an inaugural Substack post
- Withdrawal capacity: Lane said the bank could have continued after meeting withdrawals equal to about 70% of its demand deposits during Q4 2022
- Digital asset deposit decline: Digital asset deposits fell 68% from $11.9 billion to $3.8 billion during Q4 2022
- Securities sales and loss: Silvergate sold $5.2 billion of debt securities and recorded a $718 million loss
- Year-end liquidity: The bank reported $4.6 billion in cash and equivalents at year-end
Alan Lane, who led Silvergate Bank before its 2023 wind-down, has publicly blamed political and regulatory pressure from the Biden administration for the lender's voluntary liquidation. In a Substack post, Lane argued the bank remained solvent after a run on deposits and could have continued operating after satisfying withdrawals he said amounted to roughly 70% of demand deposits in the fourth quarter of 2022.
Silvergate's public filings show a steep fall in digital-asset deposits during that quarter, dropping 68% from $11.9 billion to $3.8 billion. To meet liquidity needs the bank sold $5.2 billion of debt securities and recorded a $718 million loss, while reporting $4.6 billion in cash and equivalents at year-end.
Federal reviews and regulators have reached different conclusions about the causes of Silvergate's collapse. A September 2023 Federal Reserve Board Office of Inspector General report attributed the liquidation to Silvergate's concentrated crypto depositor base, rapid growth, multilayered funding risks and significant weaknesses in corporate governance and risk management, and said examiners could have acted more decisively. Lane has countered that regulators have not proven the bank's anti-money-laundering controls failed.
Enforcement actions followed the bank's collapse: the SEC in July 2024 charged Silvergate Capital, Lane and former chief risk officer Kathleen Fraher with misleading investors about the bank's AML program and monitoring of crypto customers, alleging the bank's automated system failed to monitor more than $1 trillion in transactions and missed nearly $9 billion in suspicious transfers tied to FTX entities. Lane settled with the SEC without admitting or denying the allegations, accepting a $1 million penalty and a five-year officer-and-director bar. Separately, the Federal Reserve fined Silvergate $43 million for transaction-monitoring deficiencies. Lane also pointed to interagency statements issued in early 2023 that urged caution on crypto activities; those statements were withdrawn by government agencies in April 2025.
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