TechFlow reports, on December 8, according to The Block, Chris Lane, former Chief Technology Officer of Silvergate Bank, posted on social platform X accusing regulators of implementing a "steering into failure" strategy against the bank. This incident has been viewed by the cryptocurrency industry as part of "Operation Choke Point 2.0." David Sacks, who is set to become Trump's AI and cryptocurrency czar, responded by saying the action "needs to be examined," given that "many people were harmed."
Lane detailed the events leading up to Silvergate Bank's collapse in his post. He stated that the bank had focused on cryptocurrency-related business since 2013, but in the spring of 2023, regulators abruptly imposed strict limits on the size of dollar deposits from its digital asset clients, causing its business model to completely collapse. In March 2023, Silvergate Bank announced voluntary liquidation, becoming one of the three mid-sized banks to fail during the U.S. regional banking crisis.
