‘Nobody left to bank crypto companies’ — Crypto Twitter reacts

Mar 12. 2023

By Stephen Katte

Prominent members of the crypto community have expressed uncertainty after the loss of crypto friendly banks.

Crypto companies could find it harder to access traditional banking partners with the loss of two major crypto-friendly banks in less than a week, according to some in the crypto community. 

On Mar. 12, the Federal Reserve announced the closure of Signature Bank as part of “decisive actions” to protect the U.S. economy, citing “systemic risk.” It came only days after the closure of U.S. bank — Silicon Valley Bank — which was ordered to shut down on Mar. 10.

A week prior, Silvergate Bank, another crypto-friendly bank announced it would close its doors and voluntarily liquidate on Mar. 8.

At least two of these banks were seen as important banking pillars for the crypto industry. According to insurance documents, Signature Bank had $88.6 billion in deposits as of Dec. 31.

Crypto investor Scott Melker, also known as The Wolf Of All Streets — like many others that took to Twitter following the news — believes the collapse of the three banks will leave crypto companies "basically" without banking options.

"Silvergate, Silicon Valley and Signature all shuttered. Depositors will be made whole, but there's basically nobody left to bank crypto companies in the US," he said.

Meltem Demirors, Chief Strategy Officer of digital asset manager Coinshares shared similar concerns on Twitter, highlighting that in just one week “crypto in america has been unbanked.” She noted that SEN and SigNet “are the most challenging to replace.”

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