• Key banks for crypto industry in USA closed
• SEC lawsuits against crypto companies
• Circle CEO sees crypto companies leaving the US
The US is in the middle of its worst banking crisis since Washington Mutual went under in 2008. Silicon Valley Bank (SVB), which specializes in technology startups and venture capitalists, was forced to file for bankruptcy due to liquidity problems. US cryptocurrency firm Circle itself had $3.3 billion in the collapsed SVB, according to a tweet from Allaire.
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Also during the banking crisis, the crypto industry loses two of its key cryptocurrency banks: Silvergate and Signature Bank. Jeremy Allaire, the founder and CEO of digital currency company Circle, slammed US government agencies at Paris Blockchain Week and sees a flight of crypto companies out of the US, as reported by BTC-Echo: “We are seeing a flight from crypto -Companies from the United States,” Allaire said. “People prefer to put their money in the Bahamas because they’re afraid of what’s going to happen in the US.”
Uncertain regulatory environment
One reason why more and more crypto companies are withdrawing from the USA is the lack of clarification of responsibility for crypto currencies and the resulting insecure regulation. The US Securities and Exchange Commission (SEC) is firmly convinced that cryptocurrencies such as Bitcoin & Co. are subject to it and is taking ever harder action against crypto companies to protect investors.
In a recent press release, the SEC disclosed that it had filed a lawsuit against Beaxy and its executives. Beaxy did not register as a stock exchange – so the accusation. The company then took the consequences and published in a blog post: “The regulatory environment is simply too uncertain to continue operations”.
Another US cryptocurrency company recently voluntarily withdrew from America. At the end of March, the company Bittrex announced the closure in the USA, but the exchange is still active globally. The company said: “Under the current regulatory and economic conditions in the United States, it simply does not make economic sense to continue operating.” However, both companies emphasize that all customer funds are safe and can be withdrawn. Now Binance follows: The US Securities and Exchange Commission has also filed a lawsuit against the largest provider of cryptocurrencies and its CEO.
FTX founder arrested in the Bahamas
Allaire mentions the Bahamas in his quote and could be pointing to Sam Bankman-Fried, the founder of the crypto exchange FTX and the crypto speculation firm Alameda Research, who was recently arrested in the Bahamas. The public prosecutor’s office accuses him of a total of eight offenses relating to fraud and money laundering. The public prosecutor’s office is assuming in their indictment of knowingly deeds. However, the head of FTX and Alameda claims in numerous interviews that he has not committed any crimes. The extradition to the USA has already taken place.
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