Nic Carter, a partner at Castle Island Ventures, asserted that Silvergate Bank's downfall was largely the result of regulatory pressures intended to undermine the crypto industry. In a Pirate Wires article, he claimed the Biden administration mandated Silvergate to limit its crypto deposits to 15%, threatening repercussions for noncompliance, which he views as part of a broader initiative he calls “Operation Choke Point 2.0.” This coordinated effort aims to deter banks from servicing crypto firms. Carter pointed to the closure of other crypto-friendly banks, such as Signature Bank and Silicon Valley Bank, as evidence of regulatory overreach. He expressed skepticism about Silvergate's voluntary liquidation, noting its rarity and suggesting it indicated coercion rather than a market-driven failure. While acknowledging that Silvergate could have improved its compliance measures, Carter emphasized that it did not deserve to be forced out of business. Source: Cointelegraph