Silvergate ex-CEO claims Biden administration pressure drove 2023 liquidation

Alan Lane, the former CEO of Silvergate Bank, claims that the lender’s 2023 voluntary wind-down was driven by “political pressure” and a “coordinated attack by the Biden Administration” rather than insolvency.

In a recent Substack post, Lane argued that the bank remained capable of operating even after processing withdrawals equivalent to 70% of its demand deposits in late 2022. He maintained that the bank held sufficient liquid assets that could have been sold or used as collateral to sustain operations.

This account directly contradicts findings from federal regulators. A 2023 review by the Federal Reserve’s Office of Inspector General attributed the liquidation to the bank’s heavy reliance on crypto-related depositors, rapid growth, and multilayered funding risks, alongside significant weaknesses in corporate governance and risk management.

Additionally, the Securities and Exchange Commission (SEC) has taken enforcement actions against Silvergate Capital and Lane, alleging that the firm misled investors regarding its anti-money laundering (AML) programs and customer monitoring capabilities. Lane has disputed these claims, stating that regulators have not proven failures in the bank’s AML controls.