As a seasoned researcher with a knack for uncovering truths hidden within the labyrinth of financial regulations, I find the revelations surrounding Operation Choke Point 2.0 to be nothing short of astounding. The testimony from Elaine Hetric, former chief administrative officer of Silvergate Bank, has not only corroborated my earlier findings but also shed new light on this saga.
As a crypto investor, I’m closely following updates from Nic Carter regarding his findings on the modern-day version of Operation Choke Point 2.0. Recent testimony from a Silvergate executive has shed light on how US financial regulators have been attempting to put pressure on banks working with the crypto industry – a move some are calling Operation Choke Point 2.0. I’m intrigued by these developments and will continue to monitor this situation closely.
In a subsequent post, Carter clarified that it wasn’t the Federal Deposit Insurance Corporation (FDIC) who issued the notice about banks reducing their cryptocurrency deposits by 15%. Instead, he implied that another entity was responsible for this announcement.
Actually, what happened was that the San Francisco Federal Reserve issued the directive to banks within its jurisdiction, including significant cryptocurrency banks such as Silvergate, Signature Bank, and Silicon Valley Bank.
On September 20th, tweets posted by Carter refer to a statement made by Elaine Hetric, a previous administrative head of Silvergate Bank in California. This now-public declaration is said to offer evidence that intense pressure from Federal Regulatory Agencies, aimed at limiting their cryptocurrency activities, contributed to the bankruptcy of Silvergate Bank.
As stated by Carter, Hetric’s comment lends credence to Carter’s account of Operation Choke Point 2.0 – a set of actions taken by the U.S. government aimed at limiting cryptocurrency financial dealings.
He notes that this is the first time an executive from the now-bankrupt Silvergate has gone on record about Biden bank regulator’s efforts to discourage banks from dealing with crypto, suggesting:
Now, Elaine Hetric, a former high-ranking official at Silvergate, has submitted a statement as part of Silvergate’s bankruptcy proceedings, which for the first time, fully supports the information I presented in my reports. All this is officially documented.
— nic carter (@nic__carter) September 19, 2024
Carter elaborates on the idea that people have been misled into thinking Silvergate collapsed because of losses from their cryptocurrency depositors and accusations of FTX fraud. However, Silvergate managed to weather the storm and was exonerated of all charges. This fresh information reinforces Carter’s main argument, which suggests that under the Biden administration, the Democratic Party has been attempting to restrict the crypto industry, particularly as it integrates with traditional financial systems such as banks, in a reactive manner.
In contrast to the common viewpoint, Carter argues that it was the U.S. government’s attempts to dissuade banks from handling digital assets which ultimately contributed to Silvergate’s decline.
Originally, Silvergate was a specialized financial institution catering exclusively to the cryptocurrency sector. Following the Federal Reserve’s unofficial directive, the operations of Silvergate came to an end, leading them to choose self-liquidation voluntarily.
Despite Silvergate and SVB declaring bankruptcy, they were unable to sell their digital assets because any cryptocurrency-related operations would be considered invalid by the Office of the Controller of the Currency. These assets encompassed Sentient Coin, Signature Bank’s collapsed cryptocurrency payment system Signet, and other crypto deposits held at these banks.
As a crypto investor, I can’t help but emphasize the significance of Hetric’s testimony. It’s straightforward, officially recorded, and sworn under oath, providing undeniable evidence that reinforces what many of us have long suspected: the Biden administration didn’t let Silvergate Bank wither away on its own; they were pushed out of business by direct intervention from the administration.
— nic carter (@nic__carter) September 19, 2024
What is Operation Choke Point 2.0?
The phrase “Operation Choke Point 2.0” refers to a strategy where U.S. financial regulatory bodies worked together to encourage banks to avoid transactions with cryptocurrency companies.
Statements from organizations such as the Federal Reserve, the FDIC, and the Office of the Comptroller of the Currency have emphasized potential dangers that banks might encounter when dealing with digital currencies like cryptocurrency.
Despite the lack of an outright ban, financial institutions chose not to engage with cryptocurrencies, which had dire consequences for banks heavily invested in them. Consequently, these crypto-focused banks endured substantial financial setbacks.
Some instances mentioned by Carter involve actions such as Metropolitan Commercial Bank shutting down their cryptocurrency sector, Binance temporarily halting U.S. dollar bank transactions for individual customers, and the probe into Silvergate’s handling of accounts linked to crypto trading firm Alameda Research.
As a researcher, I assert that these financial institutions did not self-destruct, but were met with a calculated act of homicide. This event continues to loom large as an immense scandal, and regrettably, no individual has been held accountable for their role in it.
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2024-09-20 16:52