According to a White House spokesman, the Biden administration was "aware" of the phenomenon at Silvergate and continued to pay attention to reports about the desperate bank.

At a news conference on March 6, press secretary Karin Jean-Pierre stated that the White House had long noticed that Silvergate meant that another large and medium-sized password company had "basic problems" in the past six months, but declined to reveal more details of the company.

"in recent weeks, banking regulators have issued basic guidelines on how banks should protect themselves from risks associated with data encryption," she said, adding:

The US president has repeatedly called on Congress to take action to protect ordinary foreigners from the loss of digital currency, and he will do so again. People will not communicate with this special company like other digital currency companies, but we will continue to be concerned about this kind of reporting. "

Yinmen, known as the "password bank", is the key bank partner of many key password companies and projects.

However, the uncertainty surrounding the bank's capital adequacy ratio spread in early March after Silvergate also delayed the submission of its 10Muk annual report by a month. 10Muk report is a legal document, which gives a comprehensive description of the company's business operation.

After the news, Coinbase announced on March 2 that it would end its strategic partnership with Silvergate, as the password trading center also hinted at anxiety from the judiciary about the company's participation in the investigation of FTX's collapse.

Several password super-heavyweight companies quickly learn from each other, to keep in touch or to distance themselves from the bank, including Circle, Paxos, Bitstamp, Galaxy, MicroStrategy and Tether.

SilverGate also announced that it would shut down its digital currency payment Internet SilverGate Exchange Network on March 4.Because of the anxiety of "based on risk", it gives rise to further variability of the company's operation.

As a result, Silvergate's share price has fallen by about 60% since march 1, but Crypto's overall market capitalization has fallen by about 5.5% to $107.2 million at the same time.

Said in an interview with CNBC in March. Noel Acheson, Economist, author of the EconomistData encryption is currently a macroIn her newsletter, she pointed out that fully considering the relationship between China UnionPay and traditional finance, if China UnionPay declares bankruptcy, it will become more of an excuse for regulators to crack down on data encryption.

"so far, we can say that the aftermath of what happened last year was within the cryptographic company-painful but manipulated," Acheson said. " He added:

"if Silvergate goes bankrupt, regulators will be able to say,'Ah , systemic risk, you have already been informed.' This will provide him with better bullets to pursue passwords and improve their obliteration of access restrictions imposed by the password business law.