Binance CEO Says Coordinated Shutdown of Crypto-Friendly Bank

Changpeng Zhao (CZ), CEO of cryptocurrency exchange Binance, has expressed his views on the closure of two American banks, Silicon Valley Bank and Silvergate Bank.

For Zhao, closing down the bank could be a coordinated move aimed at harming banks that embrace crypto. However, CZ said that while these banks are closed, the cryptocurrency blockchain is still functioning.

On March 8, Silvergate Bank announced the closure of the institution due to a liquidity crisis caused by a large outflow of account funds. The bank is considered the biggest backer of cryptocurrency companies.

The next day, March 9, SVB customers attempted to withdraw $42 billion from their Santa Clara bank accounts. The bank failures followed the same pattern, all caused by large withdrawals.

For Zhao, the assumption of a concerted effort to shut down banks that accept crypto is not without common sense.

Cryptocurrency opponents who want to destabilize the Crypto asset industry may be behind these bank failures, he said.

Still, it’s worth noting that the closures of these banks didn’t directly impact the functionality of cryptocurrency blockchains. This shows the resilience of these technologies and their independence from the traditional financial system.

It should be noted that this assumption has not been officially confirmed and is purely speculation.

“There seems to be a concerted effort to shut down crypto-friendly banks. The result? Banks are closed. Blockchain still works,” CZ said.

Source of information: Compiled from LIVECOINS by 0x Information.Copyright belongs to the author, without permission, may not be reproduced

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