Market Monitors Exclusive Report – July 2nd, 2024
Attention Market Monitors! If you have ANY money in crypto, you need to read this IMMEDIATELY. The recent implosion of Silvergate Bank is a massive red flag that the entire crypto industry could be on the brink of disaster. Don’t get caught holding the bag when the music stops!
As reported by CoinDesk’s Nikhilesh De and Jesse Hamilton, “Silvergate Capital Corp., parent of the crypto-friendly bank whose 2023 collapse amplified the industry’s banking crisis, has agreed to pay $63 million to settle U.S. and California regulators’ accusations of internal management failings and the disclosure of bad information to investors.”
Let that sink in for a moment. One of the biggest and most trusted banks in the crypto space was allegedly hiding critical deficiencies from investors and regulators. If we can’t trust Silvergate, who CAN we trust in crypto?
According to the SEC complaint, “For most of 2021 and 2022, the Bank had not conducted appropriate automated monitoring of its preeminent product, the ‘Silvergate Exchange Network’ (the ‘SEN’)…the Bank failed to adequately or automatically monitor for suspicious activity approximately $1 trillion in banking transactions that occurred on the SEN.”
$1 TRILLION of potentially suspicious transactions! And Silvergate’s executives allegedly knew about these issues but failed to disclose them. As De and Hamilton report, “Silvergate’s team received word from its government examiners that its efforts were inadequate, the suit alleged, but it still claimed that there were no risk factors in its quarterly or annual reporting.”
Friends, this is just the tip of the iceberg. If a major player like Silvergate was cutting corners and misleading investors, you can bet there are many more bad actors waiting to be exposed. The entire crypto house of cards could come crashing down at any moment.
So what should savvy investors like you do? Here are my top 3 recommendations:
- Get out of any crypto investments NOW, while you still can. The risks far outweigh any potential rewards at this point.
- Stick to tried-and-true investments like blue chip stocks, bonds, and real estate. Boring? Maybe. But you’ll sleep a lot better at night.
- Keep a close eye on the Silvergate situation and other crypto news. Knowledge is power, and the more you know, the better prepared you’ll be for whatever comes next.
As always, do your own research and never invest more than you can afford to lose. But if the Silvergate debacle has taught us anything, it’s that the crypto emperor has no clothes. Don’t be the last one to realize it.
Stay smart and stay safe out there, Market Monitors!