Trouble Brewing in Crypto-Land: Silvergate Bank Stock Plummets

• Silvergate Capital is one of two key U.S. banks that works closely with the crypto sector.
• Regulatory challenges and fraud risks have made it difficult for crypto firms to access USD on- and off-ramps in the U.S. banking system.
• Silvergate has been at risk of a bank run since November due to its involvement with FTX and other crypto firms, leading to a 56% drop in stock price over the past two weeks.

Trouble Brewing In Crypto-Land


Developments around crypto on- and off-ramps have been heating up, as Federal Reserve Member Bank Silvergate Capital watched its depositors flee and its stock price plummet. Along with Signature Bank, Silvergate is one of the few U.S. banks that works closely with the crypto sector despite regulatory challenges and fraud risks in the industry which make it difficult for companies to access established USD on- and off-ramps. This situation has been ongoing since November after the collapse of FTX, as Silvergate played a role in servicing FTX and Alameda, leading to fears of a bank run resulting in a 56% drop in stock price over two weeks.

Key Players

Silvergate Capital is one of two key U.S banks that work closely with the crypto sector, along with Signature Bank, offering services such as deposits accounts, payments processing, and loan origination for digital asset customers totaling $9.8 billion worth of deposits so far according to their CEO Alan Laney’s statement on November 17th 2020.. Despite this impressive figure, FTX only accounted for less than 10% of these deposits meaning that even though they are at risk from liquidations due to leveraged loans being collateralized by bitcoin there isn’t an extreme reliance upon them as opposed to other institutions in the market .

Challenges & Fraud

The main reasons why there are so few entities willing to work with cryptocurrencies within regulated U.S banking systems is because of KYC/AML policies which lack regulation for offshore entities combined with issues involving unregistered security offerings & plenty of fraud throughout this industry; making it difficult for companies who are involved in money moving or processing payments/transactions .

Recent Events

Since November when it became apparent that Silvergate was helping FTX & Alameda gain access to USD rails their stock performance has decreased by approximately 56%. On top of this Laney attempted reassure markets via his statement that their current loan book hasn’t faced any losses or liquidations yet , however speculation still remains as investors fear potential bank runs if depositors begin fleeing from their institution .


The article highlights how trouble is brewing within cryptocurrency land concerning events taking place at Silvergate Capital which ultimately led up to a decrease in stock performance over recent weeks despite CEO Alan Laney’s attempts at reassuring markets regarding their current loan book ; emphasizing KYC/AML policy regulations alongside issues such as unregistered security offerings & rampant fraud are some major factors playing into why there are so few entities willing to deal within US based banking systems when involving cryptocurrencies .

Secure Bitcoin Funds with Multisig Wallets: The Ultimate Guide

What is a Multisig Wallet?

Multisig wallets are a type of Bitcoin wallet that uses multiple private keys to access digital funds. These wallets provide an extra layer of security by distributing the private keys among different people or devices, thus preventing any single entity from taking sole control. This makes them more resistant to online threats such as hacks, malware and phishing attacks.

Risks of Not Using Multisig Wallets

Without a multisig wallet, users are at risk of losing their funds due to accidental losses like leaving bitcoin in centralized exchanges that have gone bankrupt or vanished due to rug pulls. Additionally, those who do not use multisig wallets may face privacy issues if they use custodial companies for key management.

Collaborative Multisig Wallets

In collaborative multisig wallets, users typically have control over one private key while the third party (exchange/custodian) holds the second key online and the third offline in cold storage. This solution provides convenience but comes with drawbacks like KYC procedures and geographical limitations.

DIY Wallets

For extra security, DIY wallets allow users to buy their own components and build their own device that generates secure private keys without leaving any trace. This is beneficial for countries where hardware wallets are not available or have poor delivery services and also offers low-cost solutions.

Best MultiSig Wallets

The best multisig wallets include Casa (collaborative), Ledger (DIY), Trezor (DIY) and BitGo (collaborative). Each offers different levels of security depending on user preference as well as cost considerations.

BitGeneration: Bringing Bitcoin Education to Italian High Schools

• BitPolito, a group of students from Politecnico di Torino University, have announced “BitGeneration,” a project that aims to bring Bitcoin education to Italian high schools.
• The university will host 10 three-hour meetings for 30 third, fourth and fifth year students at a local high school.
• Speakers involved in this initiative include some of the best known names in the Italian Bitcoin sphere such as Giacomo Zucco and Riccardo Giorgio Frega.


BitPolito, a group of students from Politecnico di Torino University who seek to address training, research and development on Bitcoin in Italy, have announced “BitGeneration,” a project that aims to bring Bitcoin education to Italian high schools.

Educational Course

According to the press release sent to Bitcoin Magazine, the university will host 10 meetings of three hours each for 30 third, fourth and fifth year students at a local high school. Lessons taught cover various aspects of Bitcoin, from financial inclusion, economics and structures of society to computer science and game theory. There are also practical lessons focusing on showing the ease of using Bitcoin. Subjects include “creating a seed phrase and a wallet, downloading and managing a full-node, timechain analysis and mining (with a real Antminer S9 ASIC provided by BitPolito).”

Involved Speakers

Speakers involved in this initiative include some of the best known names in the Italian Bitcoin sphere, such as Giacomo Zucco, Riccardo Giorgio Frega, Alekos Filini Daniela Brozzoni and Riccardo Masutti. BitPolito has previously been funded by Conio which will also fund the first edition of the course while ShiftCrypto provides signing devices for the lessons.

Reaction To Initiative

Giacomo Zucco who gave first lecture on January 31 said that “The teachers were enthusiastic When they asked me some questions after lecture about one-third of student gathered around listen I found bright faces despite three-hour lecture.”
Nicolò Terranova member group main people responsible initiative explained plans expansion saying “We would like expand project future In next edition make documentary tell story student’s education student’s perspective hope other school take initiative example ready help.”


According press release 10 lesson be posted BitPolito YouTube channel anyone access them free charge goal make sure everyone can learn about invaluable technology with ease comfort home