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

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

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