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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 Guests:
Ram:

Twitter

Ram’s thread on Silvergate

Ram’s previous appearances on Unchained:

Genesis May Be Facing Bankruptcy. Could It Take DCG Down With It?

Why Genesis Could Very Well Be Insolvent, Not Just Illiquid

Marc:
Twitter
 
Episode links:

Class action lawsuit against Silvergate


The Block: Silvergate CEO seeks to reassure investors over crypto contagion



Letter from Senators Elizabeth Warren, John Kennedy, and Roger Marshall


The Guardian: JP Morgan Chase to pay more than $2bn in penalties for Madoff ties



The Financial Times: Silvergate: from tiny local lender to bank behind the crypto boom



WSJ: Crypto Is Taking a Few Small Banks on a Wild Ride


Bloomberg: 

These Banks Were Left Holding the Bag in Crypto Implosion

An Obscure Bank Found Its Key to Success. Then FTX Collapsed


CoinDesk: Crypto Bank Silvergate Says Its BlockFi Digital-Asset Deposit Exposure Totals Less Than $20M



New York Post: Crypto ‘smart’ money? Big traders fell for Sam Bankman-Fried



NBC: Sen. Warren demands answers from Silvergate Bank about its business dealings with FTX


Dylan LeClair’s Twitter thread


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