Unchained

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


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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
  •  

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     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

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        UnchainedBy Laura Shin

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