Regulators halt operations of crypto-skeptic Peter Schiff’s Euro Pacific Bank in Puerto Rico.
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- Euro Pacific Bank was suspended in Puerto Rico
- The bank is owned by Bitcoin critic Peter Schiff.
- Schiff seeks to sell bank despite authorities’ decision
The bank’s CEO Euro Pacific Bank, economist Peter Schiff, who is always in the news for his severe criticism against Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. and cryptocurrencies, saying that it is gold alone that will save us from the world’s economic catastrophe.
Now the news he is involved in is completely different: El Euro Pacific Ban k, Schiff’s bank in Puerto Rico, is under investigation and its operations have been suspended, as reported Associated Press and other media.
Euro Pacific International Bank obtained a license in 2017 to operate in the U.S. territory and created about 15,000 accounts two years later, but its deposits fell to USD $150 million and it lost customers after Joint Chief Compliance Officer Global Fiscal, a multi-governmental entity, a group that fights tax crimes and money laundering, said it acted two years ago “to stop the bank’s alleged facilitation of offshore tax evasion and money laundering.”
Schiff denies wrongdoing, says he will fight to sell the bank which it established in Puerto Rico despite the fact that authorities suspended its operations as part of an investigation. At Twitter added that “there was no evidence of wrongdoing.”
“We lost a lot of things because people were afraid.” , dijo Schiff a AP.
He added that while he doesn’t like anti-money laundering rules, regulations or taxes, he does comply with them.
“The fact that I’m so willing to publicly criticize the rules, you better believe I’m doing my best not to break them.” , dijo.
Schiff en Twitter sobre su banco
On social media, Schiff acknowledged that regulators had shut down his bank because of net capital problems, although he says there is no evidence of wrongdoing. Accounts have been frozen and customers stand to lose money, he says. His thread on Twitter he begins:
Despite no evidence of wrongdoing, Puerto Rico regulators closed my bank anyway because of net capital capital is most commonly defined as the large sum of money you would use to invest. problems, rather than allow a sale to a highly qualified buyer who promised to inject capital well above regulatory minimums. As a result, accounts are frozen and customers stand to lose money.
Despite no evidence of crimes, Puerto Rico regulators closed my bank anyway for net capital issues, rather than allow a sale to a highly qualified buyer promising to inject capital far in excess of regulatory minimums. As a result accounts are frozen and customers may lose money.
– Peter Schiff (@PeterSchiff) July 3, 2022
Continúa diciendo en el hilo:
The reason the regulators gave for scaling back the sale is that after the sale I would own 4% of the company that would buy the bank. They said that because of the bad press about me, they didn’t want me to own 4% of a bank, even though they know firsthand that the allegations in the media are false.
He added:
“They never let me know they objected. I found out at C&D the order to close refers to the closing price; similar to the same term used in stock trading. the bank. If they had ever told me the 4% stake was a problem, I would have restructured the deal. I just wanted out. I had to put in $7 million over the last 2 years to cover operating losses due to bad press.”
He finished:
It also costs a fortune to run a small bank. That’s why I never made any money. The compliance costs are outrageous.
What happened?
Schiff has been working to sell the bank, but the investigation into the bank’s has resulted in a suspension of operations and the impossibility of completing the sale. You are facing an agency investigation J5, whose members include the United States, United Kingdom, Canada, Australia and the Netherlands.
The economist has denied that the bank is under investigation. He also called for vindication regarding the allegations of tax evasion and money laundering by the Euro Pacific Bank, which Schiff also initiated.
It’s worth noting that the crypto community have been having fun at the expense of the news. Followers on Twitter have given you answers such as “If only Peter Schiff had opened a Bitcoin exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. years ago he would own half of Puerto Rico.” Another said to him: “So, Bitcoin is the solution.” And one more: “Bitcoin makes banks obsolete”.
Schiff told the AP that while he didn’t realize the bank was undercapitalized until it was audited, he emphasized that it was not a solvency issue but a question of minimum regulatory capital requirements. He said the bank has always had positive equity equity is the funds that would be returned to a company's shareholders if all of the company's assets were dissolved and all debts were paid off in the event of liquidation. and that while there was a deficiency based on deposits, the commissioner told him not to worry because a buyer had come along.
Schiff said a Houston-based bank wanted to purchase Euro Pacific International Bank and that it filed an application in January to initiate the process.
“They were going to rename it, rebrand it, so it wouldn’t have that stigma anymore.” , dijo.
Natalia Zequeira, commissioner for the Office of the Commissioner of Financial Institutions of Puerto Rico, he also toldThe Associated Press on Friday that he doesn’t understand why Schiff was surprised by the agency’s action, since the bureau met with him in October and he signed a consent form to make the required changes.
Fuentes: Twitter, AP ,EthereumWorld, archivo
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