Puerto Rico shutters Euro Pacific Bank, Peter Schiff’s Bitcoin-critic bank

A gold advocate and Bitcoin critic Peter Schiff said regulators in Puerto Rico closed his Euro Pacific Bank, “despite the absence of evidence of crimes”.

Despite no evidence of crimes, Puerto Rico regulators closed my bank anyway for net capital issues, rather than allow a sale to a highly qualified buyer promising to inject capital far in excess of regulatory minimums. As a result accounts are frozen and customers may lose money.

— Peter Schiff (@PeterSchiff) July 3, 2022

According to him, the problems stem from the bank’s net capital. Schiff added that accounts are frozen and customers may lose funds.

After the sale I would own 4% of the company buying the bank. They [regulators] said that because of bad news about me they did not want me to own 4% of the bank, even though they know firsthand that the allegations in the media are false,” explained the Bitcoin critic.

The reason regulators gave for tuning down the sale is that post sale I would own 4% of the company buying the bank. They said that due to the bad press about me, they did not want me owning 4% of a bank, even though the know first hand the allegations in the media are false.

— Peter Schiff (@PeterSchiff) July 4, 2022

Schiff said regulators never voiced objections to him; otherwise he would have restructured the deal.

“I just wanted to get out. Over the past two years I have invested $7 million to cover operating losses from the bad press. Running a small bank is a fortune. That’s why I never really made any money. The costs of compliance are outrageous,” he wrote.

Also it costs a fortune to run a small bank. That’s why I never really made any money. The compliance costs are outrageous.

— Peter Schiff (@PeterSchiff) July 4, 2022

Cryptocurrency community members on Twitter called the situation ironic and urged “to love decentralization”.

“Do you understand why you need bitcoin now 🤣?”

Do you understand why you need bitcoin now 🤣?

— 2037 (@btc2037) July 3, 2022

In May, Schiff predicted a test of Bitcoin at the $8,000 level. In June he suggested that the minimum could be around $5,000.

According to Galaxy Digital CEO Mike Novogratz, the crypto market downturn will last for about 18 months, and the first signs of a recovery for the industry will come after the loosening of monetary policy by the ФРС.

Follow ForkLog’s bitcoin news on our Telegram — cryptocurrency news, prices and analysis.