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21 May 2026, 10:50

Former Silvergate CRO Breaks Silence: Regulatory Pressure, Not Bank Run, Caused Collapse

BitcoinWorld Former Silvergate CRO Breaks Silence: Regulatory Pressure, Not Bank Run, Caused Collapse Kate Fraher, the former Chief Risk Officer of Silvergate Bank, has publicly stated for the first time that the bank’s 2023 collapse was driven by regulatory pressure rather than a traditional bank run. Speaking after the U.S. Securities and Exchange Commission repealed its ‘gag rule’ — a policy that previously prevented settling parties from commenting on their cases — Fraher offered a detailed rebuttal to the narrative that Silvergate failed solely due to depositor panic following the FTX collapse. Fraher’s First Public Statement After SEC Settlement Fraher settled with the SEC in 2024, agreeing to a $250,000 civil penalty and a five-year ban from serving as an officer of any public company. In her statement, she emphasized that she settled only to avoid protracted and costly legal battles, not because she admitted wrongdoing. She maintained that no financial regulator ever proved that Silvergate had deficient Anti-Money Laundering (AML) controls — a key allegation that had shadowed the bank’s final months. The timing of Fraher’s statement is notable. The SEC’s recent removal of the gag rule allows settling parties to speak publicly about their cases without risking additional penalties. This policy change has opened the door for executives like Fraher to provide their side of the story, adding a new layer of complexity to the already contentious history of Silvergate’s failure. Was It a Bank Run or Regulatory Pressure? Fraher acknowledged that Silvergate lost approximately 70% of its deposits in the wake of the FTX collapse in November 2022. However, she argued that by early 2023, the bank had successfully readjusted its capital reserves and staffing levels, positioning itself to continue operations. She insisted that the real obstacle was not a liquidity crisis but mounting regulatory pressure on the broader crypto industry, which made it unsustainable for Silvergate to maintain its business model. This perspective challenges the widely accepted narrative that Silvergate was a victim of a classic bank run triggered by contagion from FTX’s fraud. Fraher’s account suggests that regulatory actions — including informal pressure from banking supervisors and shifting policy priorities — played a more decisive role in the bank’s closure than the deposit outflows themselves. Implications for the Crypto Banking Sector Fraher’s comments carry weight because they come from the bank’s top risk officer, the person responsible for ensuring compliance and financial stability. Her claim that Silvergate’s AML controls were never formally proven deficient raises questions about the proportionality of regulatory responses to crypto-linked financial institutions. The collapse of Silvergate, along with Signature Bank and Silicon Valley Bank in early 2023, reshaped the landscape for crypto-friendly banking in the United States. Many crypto firms have since struggled to find reliable banking partners, with some moving operations offshore. Fraher’s statement adds to a growing body of criticism that U.S. regulators may have overcorrected in their response to the FTX crisis, potentially stifling innovation without corresponding safety gains. Conclusion Kate Fraher’s first public statement since Silvergate’s collapse introduces a significant alternative explanation for the bank’s failure — one centered on regulatory pressure rather than a simple bank run. While the SEC’s repeal of the gag rule allowed this perspective to emerge, it remains one side of a complex story. For readers following the intersection of crypto regulation and banking stability, Fraher’s account offers a critical counterpoint to the prevailing narrative and underscores the ongoing debate over how aggressively regulators should police digital asset markets. FAQs Q1: Why did Kate Fraher settle with the SEC if she maintains her innocence? Fraher stated she settled to avoid years of expensive litigation, a common practice even among parties who believe they have strong defenses. The settlement included a $250,000 penalty and a five-year officer ban but did not require an admission of guilt. Q2: What was the SEC’s ‘gag rule’ and why was it repealed? The gag rule was an SEC policy that prohibited settling parties from publicly commenting on their cases. It was repealed in early 2025 as part of broader SEC reforms aimed at increasing transparency. The repeal allows individuals like Fraher to speak freely about their cases without violating settlement terms. Q3: How did Silvergate’s collapse affect the broader crypto industry? Silvergate’s closure, along with Signature Bank and Silicon Valley Bank in early 2023, severely reduced the availability of U.S. banking services for crypto companies. Many firms were forced to seek banking partners overseas or rely on smaller, less regulated institutions, increasing operational complexity and cost. This post Former Silvergate CRO Breaks Silence: Regulatory Pressure, Not Bank Run, Caused Collapse first appeared on BitcoinWorld .

21 May 2026, 10:40

Attempted Kidnapping Targets Wife of The Sandbox Co-Founder in France

BitcoinWorld Attempted Kidnapping Targets Wife of The Sandbox Co-Founder in France In a deeply concerning development for the cryptocurrency industry, the wife of Sebastien Borget, the COO and co-founder of the popular metaverse platform The Sandbox (SAND), was the target of an attempted kidnapping at their family home in France. The incident, first reported by The Block, highlights a troubling escalation in violent crimes targeting executives and their families in the crypto space. Details of the Attack According to initial police reports, the perpetrators disguised themselves as delivery drivers to gain access to the property. They were accompanied by masked accomplices. The group attempted to forcibly place the victim into a waiting vehicle. The attack was thwarted when neighbors heard the victim’s screams and intervened, causing the suspects to flee the scene. French authorities have since arrested two individuals in connection with the attempted kidnapping. However, four other suspects remain at large, and a manhunt is ongoing. Investigators have confirmed that, based on preliminary findings, they are actively exploring a potential link to cryptocurrency-related crime. The precise motive remains under investigation, but the profile of the target strongly suggests the perpetrators were aware of Borget’s prominent role in the blockchain industry. A Growing Pattern of Crypto-Related Violence in Europe This incident is not isolated. French police data indicates that the country has recorded 41 crypto-related kidnappings or attempted kidnappings this year alone. This alarming statistic underscores a rapid and concerning increase in violent crimes targeting individuals associated with digital assets across Europe. The trend has fueled fears among industry leaders, many of whom are now reassessing their personal security protocols. The Sandbox, a leading virtual world platform where users can buy, sell, and build on virtual land using SAND tokens, has a high public profile. Borget is a well-known figure in the Web3 space, frequently speaking at conferences and appearing in media. This visibility, while beneficial for business, appears to have made him and his family a target. Why This Matters to the Crypto Community For investors, developers, and users of platforms like The Sandbox, this event is a stark reminder that the digital asset industry’s growth has attracted not only legitimate interest but also serious criminal elements. The safety of industry executives is now a pressing concern that could impact how companies operate and where they choose to base their operations. It also raises questions about the level of personal risk associated with high-profile roles in the decentralized finance and metaverse sectors. This case also puts pressure on law enforcement agencies across Europe to develop specialized units capable of handling the unique intersection of digital finance and violent crime. The industry itself may need to implement more robust security frameworks and support networks for its key figures. Conclusion The attempted kidnapping of Sebastien Borget’s wife is a serious and sobering event that signals a new, darker phase for the cryptocurrency industry. While the immediate situation appears to be under control with the victim safe and two suspects in custody, the broader implications for security, privacy, and the personal safety of crypto leaders are profound. As the investigation continues, the industry will be watching closely for answers and for signs of a coordinated effort to address this growing threat. FAQs Q1: Who was the target of the attempted kidnapping? The target was the wife of Sebastien Borget, the COO and co-founder of The Sandbox (SAND). The attack occurred at their home in France. Q2: How many suspects have been arrested? Two suspects have been arrested by French police. Four others remain at large and are being actively sought. Q3: Is there a confirmed link to cryptocurrency? Police are investigating a potential link to cryptocurrency-related crime based on their initial findings, but the exact motive has not yet been officially confirmed. This post Attempted Kidnapping Targets Wife of The Sandbox Co-Founder in France first appeared on BitcoinWorld .

21 May 2026, 10:37

Bitcoin Breaks Back Into Descending Channel: Is the Next Move Upwards?

With US/Iran peace talks right on “the borderline” according to President Trump, financial markets are also at a crossroads. If a deal can be struck and the Strait of Hormuz is reopened, most financial assets could surge. On the other hand, if a deal falls through and hostilities break out again, the U.S. stock market, and Bitcoin, could be heavily sold down. $BTC price regains descending channel Source: TradingView The 4-hour chart for $BTC shows us that the rally is in process and that the price has regained the descending channel . That said, there are a few bearish factors to take into account. One is that the 200 SMA in this time frame is not far overhead and is lending its weight to the $78K horizontal resistance level . Another is that according to the Stochastic RSI indicators, the current upside phase may be topping out. If we look at the last downside phase, it can be seen that this was quite a plunge which wiped more than $6,000 from the price. This upside phase has only amounted to a gain of around $2,000 so far. Potentially with another bearish phase to come, could this force a lower low below the strong $76K support level? Bitcoin needs that Middle East peace deal. Bull flag breakout back in play? Source: TradingView With the $BTC price having travelled inside its bear flag for well over 3 months so far, it still looks far from resolving. The previous bear flag was of a 2-month duration and led to the sharp plummet down to $60K. It looks like the bulls are making a real fight of this one. The small descending channel that has brought the price back into the bear flag can actually be taken as a bull flag , so with the $BTC price regaining this flag, there is now the possibility of a breakout further down the line that could take the price clear of the major $80K horizontal resistance, the 200-day SMA, and the top of the bear flag. The measured move out of the flag would be to around $85K. The possibility of a major resistance breakout Source: TradingView While in the weekly view the $BTC price looks to have been solidly rejected from the $82K major resistance level, it could be taken that this was the first attempt at a breakout, and if further attempts are made, just like beating on a glass roof, the resistance could then shatter. A slight problem could be that the Stochastic RSI indicator lines are rolling over and could be signalling the start of the next decent-sized leg down. That said, just as happened the last time they reached the top, there could be a bounce from the 80.00 level that could help to take out the major resistance. Once again, a US/Iran peace deal, or lack of one, could play a major role in what happens next. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

21 May 2026, 10:33

SEC hits brake on new ETF applications pending public input on risks

The U.S. Securities and Exchange Commission (SEC) has delayed the launch of “novel ETFs,” including event-betting products, after Chairman Paul S. Atkins requested public input on potential market effects. In a Wednesday statement, Paul Atkins stated that exchange-traded funds (ETFs) remain a “major driver of innovation in the securities markets.” He added that ETF assets had increased since 2019. According to Atkins, several large fund issuers have freely agreed to delay the introduction or effectiveness of specific ETF products while the SEC evaluates their broader market ramifications. Prediction market ETFs face delays and uncertainty Bloomberg ETF expert Eric Balchunas described the SEC’s move to solicit public feedback on prediction market ETFs as an indication that regulators are cautious about the new products. He pointed out that before granting broader market access, the Commission is considering the broader ramifications of the new ETF category and is requesting additional time and public feedback. SEC Chair is seeking public comments on prediction market ETFs.. the commission is clearly wrestling with these and wants more time and input. I get it. These are a whole new thing (kinda like crypto) and want to feel comfortable bf they open the barn door. pic.twitter.com/RdV0Rn8mSx — Eric Balchunas (@EricBalchunas) May 20, 2026 Prediction markets are currently one of the most popular topics in cryptocurrency. According to industry experts, these markets currently handle over $15 billion in monthly trade activity, covering events such as elections, sports, financial results, and more. The delay of novel ETFs follows a series of events, including the SEC’s pause on the launch of over two dozen exchange-traded funds (ETFs) linked to prediction markets on May 4. The agency is requesting further details from issuers on investor disclosures and product structure. The pause affected proposed funds from Roundhill Investments, GraniteShares, and Bitwise. Bitwise submitted its filing on February 15 for several prediction-market ETFs under the PredictionShares brand to monitor the outcomes of the U.S. election. Roundhill Investments and GraniteShares both registered for prediction-market ETFs in February. The products were nearing the end of a 75-day review window before they would have automatically gone into effect under the SEC’s ETF fast-track regulations implemented last year. Bloomberg ETF analyst Eric Balchunas had anticipated a May 8 debut, while his colleague James Seyffart pointed out that Roundhill’s application had an effective date of May 5. In its February 2026 filings, Roundhill revealed that the risks associated with investing in event contracts are different from those associated with regular futures, options, or equities. The company noted potential valuation uncertainty, settlement conflicts, and ambiguity about the definition of underlying events, including which data sources are used and when outcomes are determined. Investors could lose nearly all of their wealth if the verdict is unfavorable, according to some of the papers. Prediction markets face an expanding state and federal conflict The latest SEC delay comes amid broader regulatory dynamics regarding prediction markets and associated platforms. Kalshi and other prediction-market operators have faced ongoing legal challenges in several U.S. state courts, highlighting the regulatory complexity as the industry seeks greater legitimacy. The SEC’s cautious review of prediction market platforms is influenced by Kalshi’s case and concerns of state-level outcomes. In March, Arizona became the first state to prosecute a prediction market platform. The state claimed that Kalshi Inc. operates an illegal gaming company in Arizona without a license and engages in election wagering. As of May 21, at least 11 states have initiated enforcement action against prediction market platforms, and 30 have signed amicus briefs in support of cracking down on them. “Kalshi may brand itself as a ‘prediction market,’ but what it’s actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law. No company gets to decide for itself which laws to follow.” – Kris Mayes , Arizona Attorney General. The CFTC, meanwhile, has changed its stance on the regulation of prediction markets in recent years. According to Linda Goldstein, the agency is now “all in,” suing states to prevent enforcement , writing proposed rulemaking, and developing rules to prevent insider trading and market manipulation. Initially, the government questioned whether event contracts constituted swaps within its jurisdiction. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .

21 May 2026, 09:30

Washington Moves To Review Crypto Tax Rules With New IRS Study Bill

Kraken sent 56 million tax forms to the Internal Revenue Service last year. Nearly a third covered transactions worth less than a dollar. More than 75% were for trades under $50. Those numbers, cited by the crypto exchange last month, have added weight to a growing call in Congress to rethink how small digital asset transactions are taxed in the United States. Related Reading: Crypto Access To Banks In Focus After Trump’s New Executive Order A Study, Not An Exemption A bipartisan group of House lawmakers introduced a bill Tuesday that takes a first formal step toward addressing that burden. Called the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields Act — or PARITY Act — the legislation does not create a tax break for small crypto transactions. What it does is direct the Treasury Department to examine whether one should exist, and to report back within 180 days on what relief it can offer under its current authority. Innovation should create opportunity for everyone, not just those already ahead. The Digital Asset PARITY Act modernizes the tax code for the digital age, creates clearer rules, and ensures emerging financial tools help expand financial inclusion and pathways to wealth. It is… pic.twitter.com/44B8mpEQLl — Rep. Steven Horsford (@RepHorsford) May 19, 2026 The bill also calls for a study on how much paperwork small crypto transactions generate for taxpayers, and on the total number of transactions under $200 that get reported to the IRS each year. The Treasury would also be asked to outline what resources the IRS would need if a de minimis exemption were eventually passed into law — and what kinds of fraud or abuse such an exemption might invite. Republican Representative Max Miller, one of the bill’s sponsors, said the US tax code has not kept pace with how fast digital assets have grown. “As America continues to lead the world in innovation, our tax code has failed to keep pace with the rapid growth of digital assets and modern financial technology,” Miller said in a statement. What Else The Bill Covers The PARITY Act carries over a section from an earlier draft that would treat regulated payment stablecoins like cash for tax purposes. Under that provision, no gains or losses would be recognized on stablecoin transactions unless the cost basis of those tokens falls below 99% of their redemption value. The bill also seeks to apply wash sale rules to crypto — a change that would close a loophole that stock investors are not allowed to use but crypto traders currently are. Related Reading: Zcash Soars 88% In 30 Days: Is ZEC The Stealth Winner Of This Crypto Cycle? Democratic Representatives Steven Horsford and Suzan DelBene joined Miller and Republican Rep. Mike Carey in introducing the bill. Horsford had previously released a discussion draft of the legislation back in March. A Race Against The Clock Miller told Bloomberg Tax he believes the bill can pass before this Congress wraps up. That deadline falls in January, after the November midterm elections in which every House seat will be contested. Featured image from Getty Images, chart from TradingView

21 May 2026, 09:10

Ripple-Owned GTreasury Earns Certified Partner Badge on SWIFT’s Business Solutions Directory

Ripple’s GTreasury Lands on SWIFT Directory as ISO 20022 Alignment Signals Institutional Shift GTreasury, a Ripple-linked firm, has quietly entered SWIFT’s tightly controlled ecosystem, earning a Certified Partner listing in the Business Solutions Directory under North America, an acknowledgment linked to SWIFT’s 2025 standards and ISO 20022 compliance. ISO 20022 is now the foundation of next-generation financial messaging, powering richer, more structured data exchange across banks, corporates, and payment providers. GTreasury’s certification signals that its treasury management platform is aligned with this global shift toward standardized, transparent, and interoperable financial communication. What makes this development especially significant is its timing. Ripple completed its acquisition of GTreasury on October 16, 2025. More notably, the deal brought a SWIFT-certified, ISO 20022-aligned treasury platform dubbed Ripple Treasury into Ripple’s growing institutional ecosystem, one already focused on cross-border payments, liquidity management, and digital asset infrastructure. SWIFT Certification and Ripple: A Signal of Convergence in Global Finance, Not Competition At first glance, a Ripple-linked company appearing in SWIFT’s directory may seem paradoxical. In reality, it signals a broader convergence in global finance. SWIFT certification is not a stamp of partnership but a rigorous operational benchmark, verifying that a platform meets the technical, security, and compliance standards required by global banks and multinational corporations. For GTreasury, this validation places it firmly within the infrastructure layer institutions rely on as they modernize payment rails. For Ripple, it signals a deeper reach into enterprise treasury systems that are closer to day-to-day corporate liquidity management than to speculative crypto markets. The larger takeaway is interoperability. Rather than competing systems, traditional financial messaging networks and blockchain rails are increasingly overlapping. SWIFT continues to refine its standards, while networks like the XRP Ledger focus on faster settlement and more efficient liquidity movement. What’s emerging is not a replacement model, but a convergence, where integration between messaging, treasury systems, and blockchain settlement is becoming a practical requirement rather than a future ambition. How Ripple and SWIFT’s Ecosystems Are Set to Align Institutional Finance Ripple’s strategy comes into sharper focus. By bringing GTreasury into its ecosystem, Ripple is positioning itself at the convergence of traditional treasury management and blockchain-based settlement. Paired with XRP and the XRP Ledger, the aim is not to displace existing financial messaging systems, but to enhance them, enabling faster settlement and more efficient liquidity coordination across networks. Ripple Treasury represents this shift within Ripple’s broader ecosystem, positioning itself as a next-generation corporate finance platform. It brings cash management, digital assets, and cross-border payments into a single operational layer for CFOs and treasury teams, helping reduce fragmentation across traditional banking systems and emerging digital asset rails. While some commentary frames this as a shift away from SWIFT, the reality is more layered. SWIFT remains deeply embedded in global banking infrastructure, while Ripple-linked systems are increasingly aligning with the very standards and workflows SWIFT helps set. As the convergence momentum gains steam, treasury platforms, messaging standards, and blockchain liquidity networks are starting to sit within shared compliance and operational frameworks. Therefore, GTreasury’s inclusion in SWIFT’s certified directory adds to this trend, pointing to a quiet shift in institutional finance toward a hybrid model where traditional rails and blockchain infrastructure run in parallel rather than in competition.