Signature Bank didn't collapse. It got killed. [SEC Vs Crypto]

[pawel7777]

I wasn't very fond of Coin Bureau youtube channel for them being notorious in shilling various altcoins, but they seemed to improve a lot and are doing pretty solid homework on legal and regulatory issues relating to Bitcoin and crypto in general.

Here's their recent video on (crypto-friendly) Signature Bank, which shows some nuances that you won't hear in the mainstream media and is related to the wider crypto crack-down (aka operation Choke Point 2.0)

https://www.youtube.com/watch?v=5YZ6TG3iXKU

Short summary (generated by Merlin tool):

✦ Signature Bank, the final pro-crypto bank in the US, was shut down by regulators despite being solvent.
✦ Signature bank developed Signet, a platform to transfer US Dollars 24/7 for its crypto clients.
✦ Signet and Silvergate are two pro-crypto banks with overlapping client bases, but differences in their service offerings.
✦ Signature Bank shut down by NYDFS, causing huge issues for crypto companies.
✦ Regulators targeted Signature Bank due to its Signet platform.
✦ The FED may be threatened by private sector competition.
✦ US regulators are targeting stablecoins as their final crypto competitor to crush.
✦ Global Crackdown on crypto may happen this summer.

Really good watch and puts things into perspective.

[Ozero]

These actions to close Signature Bank and Silvergate Bank are direct evidence that governments can and will interfere in the regulation and circulation of cryptocurrencies. Previously, information has already appeared that private and commercial stablecoins, which we are already accustomed to using in the cryptocurrency market, may fall next. If this happens, then the current crypto-winter could last almost a long time, right up to the next Bitcoin halving.

[bittraffic]

He also said that there were government surveys to banks asking them if their bank exposes their clients access to crypto. Signature Bank and SVB must have been the top crypto-friendly banks.

Several channels are talking about chokepoint 2.0 and if you closely analyze also what SEC is doing, it will make sense as well.  It's known to us that the government doesn't like other currencies they couldn't control and while they can try crushing the existence of crypto in the meantime, they will do it.

[darkangel11]

I agree that the US government is trying to mess with crypto, but that's not the whole government, it's the Biden supporters for the most part, because republicans seem to be more pro crypto with states that are considered to be more republican voting for mining to be legal with no restrictions and recognizing cryptocurrencies as assets. To mention a few, Kentucky, Texas and Wyoming are pro crypto, while NY was anti crypto from the start with their extremely restrictive licenses. If you remember Charlie Shrem, he used to run a bitcoin business in NY and ended up in jail for it.
IMO the US is divided when it comes to cryptocurrencies, just as it is on abortion, cannabis, capital punishment and many other things but the overlords have overplayed their hand by printing money and this eventually will lead to more inflation, or more bank defaults. In both situations bitcoin will come up on top because it's allowing you to sit on the sidelines and watch it all happen without being involved.

[Casdinyard]

He also said that there were government surveys to banks asking them if their bank exposes their clients access to crypto. Signature Bank and SVB must have been the top crypto-friendly banks.

Several channels are talking about chokepoint 2.0 and if you closely analyze also what SEC is doing, it will make sense as well.  It's known to us that the government doesn't like other currencies they couldn't control and while they can try crushing the existence of crypto in the meantime, they will do it.

This is just horrible, a massive crackdown against cryptocurrency usage to sway people into investing into government-sanctioned assets and bonds? That's just disgusting and a foul play at best. I do hope that the general public wins against this arms race but I doubt it considering the choke hold that SEC has over most banks and firms in the country. US will know to realize how beneficial cryptocurrency is to their dying economy if the crackdown ensues and crypto is completely shut off from the country, coz I doubt people and entities that use crypto will retain operations over a country that would like to regulate it for the sake of personal gain. I guess it's time for the cryptocurrency industry to look outside of US and find other countries to support, third-world countries are looking rather ripe right now considering that most of them are cryptocurrency-friendly to begin with.

[DeathAngel]

Banks all over the Western World seem to be trying to create obstacles to stop people off boarding into cryptocurrency. There seem to be bans & limits on people buying cryptocurrency with their fiat banks. Governments are running scared, their ponzi banks are blowing up, they are illiquid, broke organisations. They want to stop or limit the amount of cryptocurrency you can buy with fiat cuck bucks. Do your best to invest in whatever cryptocurrency you like ASAP before they bring in CBDC’s.

[DaveF]

Just when you think you have heard the dumbest thing out there, someone surprises you can comes out with something dumber.
Signature was
1) Not fully solvent
2) Not particularly crypto friendly


Crypto friendly banks
Earn BTC with your checking account:  https://www.quontic.com/banking/checking/bitcoin-rewards-checking/

BankProv: https://bankprov.com/crypto-business/

SoFi: https://www.sofi.com/invest/buy-cryptocurrency/

Your youtube link is filled with 1/2 truths and distortions and really should be considered click-bait at best.

-Dave

[franky1]

my interpretation of events are this

many "start ups" have dumb CFO's who should have known upfront to not risk putting billions of dollars into one account because accounts have a $250k limit of protection.

in some cases some businesses done deals with the banks to invest the fractional reserve amounts(non daily spend flows) of the businesses reserves of its customers..  into government bonds and thus the business accounts held bonds instead of bank balance

those bonds were 1% due to the QE of 2020-2022

when certain stable coins failed over the last couple years the managers tried to get that money out. meaning the stable coin managers had to sell bonds to the bank and banks had to sell the bonds to get cash to cover withdrawals. however in 2022 due to better bonds being 3-5% no one on the bonds market wanted the 1% bonds at value. thus the bank could only sell bonds at a loss.

..
what is now being seen is that other banks are revealing they own alot of 1% bonds thus have a loss risk if certain things are triggered, and a few big account holders are getting nervous

and now people with over $250k in one bank are taking out the excess reserves over that limit to open up multiple different accounts in different banks to not "have all eggs in one basket" which for some banks is finding that they are having bank runs on their accounts whilst people are diversifying their accounts

(advice for people:
if you have for instance $1m in one account with one bank. set up an account with 3 other banks and have $250k per account.. even if the government are saying "all account balance is guaranteed" this month. just hedge that risk. because slimy banks will find any means to not pay out full balance)

i feel this months statement of "all account balance is guaranteed" is to fool people into not diversifying their account balances(by pulling out large amounts from one bank to split it across many banks) but if they need to try to persuade people not to do something by saying certain promises.. then there is still a risk

[molsewid]

These actions to close Signature Bank and Silvergate Bank are direct evidence that governments can and will interfere in the regulation and circulation of cryptocurrencies. Previously, information has already appeared that private and commercial stablecoins, which we are already accustomed to using in the cryptocurrency market, may fall next. If this happens, then the current crypto-winter could last almost a long time, right up to the next Bitcoin halving.

I agree, at some point I'm having the feeling that government will took care in everything and manipulate everything of our belongings and way to live just to satisfy the needs of them. The government doesn't want competition to other crypto that's why they are manipulating the flow, deposit and withdraw and etc. It will gives us no freedom, I just hope it will be done soon.

[Hamza2424]

Some Banks are collapsing and many others are under pressure, CDS of different banks is reaching to its ATH and more defaults are expected in the coming time. At the same time controllers are interested in stopping somehow their capital within their controlled economy which seems pretty difficult now, Actually, regulators are interested in their higher stakes which they enjoying on the efforts of the middle class and under-rated civilians they are using the value generated by these people while charging them with taxes and imprecise policies.

Still, the common man is unable to understand the trap which is imposed in the form of Fiat money I think the barter system was better than the current system the only problem was the diversification of value which was fixed by Coins but with the starting era of paper currency Mankind founded Inflation, Interest and many other root problems of general economy

[franky1]

Still, the common man is unable to understand the trap which is imposed in the form of Fiat money I think the barter system was better than the current system the only problem was the diversification of value which was fixed by Coins but with the starting era of paper currency Mankind founded Inflation, Interest and many other root problems of general economy

fiat money began as a receipt of a gold vault. where people traded receipts(bank notes) to later reclaim gold via whomever was holding the bank note
each bank note had equal gold amount in a bank 1:1

gold prices rose meaning the banks could sell some gold but still have some 1:1 balance between bank  notes and gold value.. .. until gold prices dropped, where there was not enough gold in the banks to cover deposit bank note amounts

instead of banks buying gold again to correct the problem. they instead depegged the gold:bank note amount

it was the de-pegging of these receipts:gold due to what i just said, that started the ball rolling.

it allowed banks to generate bank notes without hoarding equal gold. then more fractional reserving, then more then more.
then just completely uncontrolled printing money without caring about reserves of even customer bank balances

yep there is no limit on printing associated with bank 'value' holdings

which then hurts bank customers when the game flips upside down and when people want their value out. the bank system just doesnt have real value to give them

things should go back to assets which have a true cost of production (gold/bitcoin(PoW)/rare minerals)

[crunck]

There are still many who are still proud and say that the collapse of these banks will benefit cryptocurrencies. But they don't know that these banks are closely related to cryptocurrencies. The government has more than enough power to save those banks, the US government has a money printing machine, they can buy the whole world. But they didn't save the banks and there will be more banks going bankrupt and that's what they want.

[OcTradism]

many "start ups" have dumb CFO's who should have known upfront to not risk putting billions of dollars into one account because accounts have a $250k limit of protection.

They are not dumb but they are greed and they have pressure from their CEOs as well as have same greed like their CEOs and together they make internal greed cycles to bring their business to all time greed levels. That put their business to bigger risk of collapse and the pandemic, QEs then consequent financial tightening solutions from governments and central banks in interest rates triggered those bank collapses gradually.

Dead outcome comes very gradually but when time comes, it starts and ends very quickly, within a few days or faster within few hours.

[franky1]

many "start ups" have dumb CFO's who should have known upfront to not risk putting billions of dollars into one account because accounts have a $250k limit of protection.

They are not dumb but they are greed and they have pressure from their CEOs as well as have same greed like their CEOs and together they make internal greed cycles to bring their business to all time greed levels. That put their business to bigger risk of collapse and the pandemic, QEs then consequent financial tightening solutions from governments and central banks in interest rates triggered those bank collapses gradually.

smart/established businesses set up multiple accounts where each department gets its own budget. where by funds are separated and accounted for separately thus reducing risk

silly start-ups grab cash from investors and co-mingle it all into one account even if they are running different projects/brands

[NotATether]

chokepoint 2.0

...will fail as soon as Republicans and extreme right-wing hordes protest it once they realize the banks are losing out because nobody actually wants to use CDBCs. 

[Emily Barros]

So, maybe it's worth giving them another chance and checking out their content for yourself to see if it aligns with your own opinions and research. It's also interesting to note the nuances that the video points out, such as the differences between the pro-crypto banks Signet and Silvergate, and the potential threat that private sector competition may pose to the Federal Reserve.

[stompix]

Just when you think you have heard the dumbest thing out there, someone surprises you can comes out with something dumber.

And not just twisting facts and outright lying, sometimes I can't understand some of the radicals out there, they look something like this in my opinion:


Weren't banks supposed to die because of BTC?
Weren't you supposed to be your own bank?
Wasn't playing around with fractional reserve the worst thing about banks?

How the hell in the name of god can somebody come now and make a case for a bank that was insolvent, was below the 10% asset ratio, and act like it's a government conspiracy that is destroying something that was never supposed to exist?

Seriously are we starting some tinfoil hat witch hunt club where everything is done because the government somehow hates crypto? If they hated crypto don't you think there would have been like 1 trillion billion quadrillion things that they could have done that would have had a worse effect than crushing their own banking sector?
Just how dumb is this, they are shooting their own leg so they can't go to your birthday party and thus ruining it, or what?

[DaveF]

Just when you think you have heard the dumbest thing out there, someone surprises you can comes out with something dumber.

And not just twisting facts and outright lying, sometimes I can't understand some of the radicals out there, they look something like this in my opinion:


Weren't banks supposed to die because of BTC?
Weren't you suppose to be your own bank?
Wasn't playing around with fractional reserve the worst thing about banks?

How the hell in the name of god can somebody come now and make a case for a bank that was insolvent, was below the 10% asset ratio, and act like it's a government conspiracy that is destroying something that was never supposed to exist?

Seriously are we starting some tinfoil hat witch hunt club where everything is done because the government somehow hates crypto? If they hate d crypto don't you think there would have been like 1 trillion billion quadrillion things that they could have done that would have had a worse effect than crushing their own bank sector?
Just how dumb is this, they are shooting their own leg so they can't go to your birthday party and thus ruining it, or what?

Because it gets clicks on their youtube video / followers on their youtube channel.
And it lest people who follow those beliefs think they are 'sticking it to the man' so to speak and 'being independent of government power grabs' and so on.

The other funny part is the Signature bank is still going, was taken over by Flagstar / New York Community Bank and for 99% of things nothing has changed. Policies are the same and so on. The people that work there just have a new name on the top of their paycheck this week. No major policy changes. Looks to be the same with the people that bought SVB.

When they go after places like State Street Bank / Goldman Sachs who are more or less holding most of the funds for places like Gemini get back to me.
Until then: https://www.youtube.com/watch?v=aURlCjad7uA

-Dave

[franky1]

When they go after places like State Street Bank / Goldman Sachs who are more or less holding most of the funds for places like Gemini get back to me.

Gemini have funds?.. i thought they had no funds because they handed it all to genesis and thus DCG(current bankruptcy/lawsuit drama between gemini and dcg).. where DCG had until recently had value in the certain banks mentioned in this topic(during the said legal drama)

DCG have recently been reaching out to other banks due to their involvement with the ones mentioned in this topic [1] [2]

so its all applicable to the topic

DCG is a ~$15bill consortium of value

there were other non crypto based businesses affected by the banking drama.. but that does not mean there was no crypto drama in the 'bank run'/'money shuffle' diversifying tasks done in recent months

[DaveF]

When they go after places like State Street Bank / Goldman Sachs who are more or less holding most of the funds for places like Gemini get back to me.

Gemini have funds?.. i thought they had no funds because they handed it all to genesis and thus DCG(current bankruptcy/lawsuit drama between gemini and dcg).. where DCG had until recently had value in the certain banks mentioned in this topic(during the said legal drama)

DCG have recently been reaching out to other banks due to their involvement with the ones mentioned in this topic [1] [2]

so its all applicable to the topic

DCG is a ~$15bill consortium of value

there were other non crypto based businesses affected by the banking drama.. but that does not mean there was no crypto drama in the 'bank run'/'money shuffle' diversifying tasks done in recent months

DCG / Genesis was for Gemini earn. They were always very clear on that, when you put money in the earn program, it was no longer under the control of Gemini.

The funds to run the day to day operations / the holdings for their GUSD stablecoin / and all those other things are in banks and treasury bills.

But in the end when you have banks like Pathward (Metbank) and WebBank and all the others that issue crypto debit cards for companies and all the rest, when someone like the OP comes in saying that the government is shutting down crypto banks I just roll my eyes and point out that they really do need the tinfoil hat.

On a side note, Gemini earn was always a joke IMO, they were letting you take your money out of the control of Gemini and putting it in with DCG and then took a very large percentage of the profits for themselves, yes it was easier then doing it yourself but it then put them in this position of looking bad because they had their name on it. But Gemini Earn, does sound a lot better then Gemini is going to take your money invest it in risky things for 12%+ APR and give you 8% I can see the marketing department having an issue with that


-Dave