Peter Schiff urged selling bitcoin amid Silvergate Bank troubles

The president of Euro Pacific Capital, Peter Schiff, urged selling the leading cryptocurrency and buying gold.

If #crypto really is the future, why is #Silvergate, the premier crypto bank already a thing of the past? A wave of #blockchain related bankruptcies will soon crash down on #CryptoCurrencies, turning the crypto winter into a deep freeze. Hurry, sell your #Bitcoin and buy #gold.

— Peter Schiff (@PeterSchiff) March 10, 2023

“If cryptocurrency really is the future, why is Silvergate, the premier crypto bank, already a thing of the past?”, Schiff asked.

In his view, a wave of bankruptcies will crash onto digital assets and turn the crypto winter into a deep freeze.

In response to users’ questions about his bank’s problems, Schiff said that regulators and the media are to blame.

My bank didn\’t fail. Blame the government and the media for your inability to access your funds.

— Peter Schiff (@PeterSchiff) March 10, 2023

In July 2022, regulators in Puerto Rico closed Euro Pacific due to allegations of insolvency and non-compliance with requirements. Schiff said at the time that authorities were exacting retribution for his criticism of heavy taxation and government control.

Later he said that he was prepared to sell his bank for Bitcoin and any other digital asset.

In February 2023 it became known that US authorities are investigating the link between Silvergate Bank and victims of the collapse of FTX and Alameda Research. Moody’s downgraded the institution’s rating due to a deterioration in its baseline credit assessment.

On March 3, 2023, Silvergate announced the cessation of operation of the payment network SEN. And less than a week later the bank’s parent company announced its liquidation.

Against the backdrop of bankruptcy rumours, many crypto companies distanced themselves from Silvergate. In particular, Block.one sold its stake in the organization, and the LedgerX platform refused to use the bank’s services in favor of Signature Bank.

In December 2022, Peter Schiff predicted the fall of Bitcoin to $5,000.