The Blockchain Association (BA) has taken action by filing a request under the Freedom of Information Act (FOIA) to investigate the recent collapses of banks that supported the crypto industry.
This move shows the BA’s determination to delve into the matter and gather more information about the events that led to these bank failures. By actively seeking to uncover the underlying causes, the BA hopes to shed light on the issues facing the crypto industry and prevent similar incidents from happening in the future.
According to a statement released by the group on Friday, the 14th of this month, it had also sent this request to the Federal Housing Finance Agency (FHFA) and the New York Department of Financial Services (NYDFS).
The inquiry aimed to determine whether the collapse of Signature Bank, known for its support of cryptocurrencies, was due to its insolvency or if it was a deliberate regulatory action aimed at sending an anti-crypto message, despite the Bank being financially sound.
The Blockchain Association has also announced that it is investigating the actions of the Federal Home Loan Bank of San Francisco regarding its decision to withdraw a loan given to Silvergate just a few months before the company’s collapse.
The association is looking into whether the Bank took an “extraordinary and unusual” action in pulling the loan, which may have contributed to Silvergate’s failure. This investigation is part of the association’s ongoing efforts to promote transparency and accountability within the blockchain industry.
The Blockchain Association is committed to ensuring that all companies operating within the blockchain space are held accountable for their actions. As such, the organization is investigating the Federal Home Loan Bank of San Francisco to determine if its decision to withdraw a loan from Silvergate was justified or a contributing factor to the company’s eventual collapse. By conducting this investigation, the Blockchain Association hopes to shed light on any irregularities or misconduct that may have occurred in the lead-up to Silvergate’s failure.
