Fed inspector blames crypto focus, nepotism for Silvergate Bank collapse By Cointelegraph

Crypto-friendly Silvergate Bank ultimately collapsed this year due to over-dependence on risky crypto deposits and nepotism that led to ineffective management, according to United States Federal Reserve inspectors.

In a Sept. 27 executive summary of its review into the bank’s collapse, the Fed Board’s Office of Inspector General pointed the finger at Silvergate’s change in strategy to focus on “customers engaged in crypto activities” in 2013.