How Will the FTX Collapse Affect Silvergate? A Bear and a Bull Debate

Episode 431

Ram Ahluwalia, CEO and cofounder of crypto-native investment advisor Lumida, and Marc Cohodes, individual investor and former hedge fund manager, have a heated debate about Silvergate, a crypto-friendly bank that plays a key role in integrating crypto with traditional finance and is currently under scrutiny due to its ties with FTX and Alameda. Both Marc and Ram have a vested interest in Silvergate. Marc is shorting the stock, while Ram is longing it.

Show highlights:

why Silvergate plays such a vital role in the movement of money within the crypto industry
whether Silvergate runs proper KYC and AML practices
whether Silvergate has a $1 billion hole in its balance sheet
whether regulators will go after Silvergate as they are doing with FTX
why Marc thinks the FTX collapse wouldn't have happened without Silvergate
whether Silvergate was complicit with FTX’s activities or simply negligent
why Ram believes this case is different from JPMorgan's involvement with Madoff
what regulatory actions might come in the near future for Silvergate
why Ram thinks regulators will go to "great lengths" to avoid a bank failure
what would it take for Ram and Marc to change their minds

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