Kate Fraher

5/5 Faced with these options, and advised by wise counsel that a pound of flesh would be taken regardless, I chose to settle so I could move forward. But the process itself is designed to apply maximum pressure, and the human costs are real. I was personally de-banked and had credit lines summarily closed—an aggressive tactic used to disrupt daily life and force compliance. Furthermore, while the SEC will no longer enforce the silence, I still live with the structural consequences of this enforcement action. I bear the burden of a significant financial penalty paid as part of the settlement, alongside ongoing, very real limitations to my professional trajectory and executive options. The allegations leveled against me were a side story to a larger political agenda. I am incredibly proud of the resilience, integrity, and operational execution our team demonstrated during a true banking crisis. I am glad the right to speak the truth has finally been restored, but we must continue to talk about the long-term professional and personal toll exacted on individuals by regulation through enforcement. #Banking #RiskManagement #CorporateGovernance #SEC #FirstAmendment #FinTech #Debanking

4/5 At no point has any regulatory agency proven that our AML controls failed or that wrongdoing went undetected. Instead, a geopolitical narrative took precedence over objective facts. When the federal government levels its full weight against an individual, the playing field is entirely asymmetric. They possess unlimited resources. For individuals caught in these crosshairs, the choices are severely restricted: 1. Go completely broke trying to fight a multi-year battle in court. 2. "Turn" on individuals or a company you know to be profoundly ethical—even if you have absolutely no dishonest or harmful evidence to give. 3. Settle on a "neither admit nor deny" basis, which historically meant signing away your First Amendment right to defend your reputation.

1/5 **The Freedom to Speak: Reflecting on Risk Management, Regulatory Overreach, and Yesterday's SEC Decision** Yesterday, the SEC made a historic announcement: it officially rescinded its 50-year-old “gag rule” (Rule 202.5(e)), ending the policy that prohibited settling defendants from publicly denying or criticizing the agency's allegations. As Chairman Paul Atkins noted, “Speech critical of the government is an important part of the American tradition.”

3/5 The risk of a deposit run is a feature—not a bug—of a fractionalized banking system. Surviving one is proof of robust risk management. In fact, by the beginning of Q1 2023, we had successfully restructured the business with appropriate capital levels and a right-sized workforce to safely operate a smaller, more focused institution. We did not wind down because of the run or the market volatility. We ultimately chose a responsible, voluntary wind-down because the broader administrative and regulatory pressure levied against the digital asset industry made operating a viable business impossible.

2/5 For the first time since my own settlement, I am free to share my story. While I sincerely applaud the SEC for finally ending this unconstitutional policy, a change in rules doesn't erase the lasting damage of the process. When FTX collapsed in late 2022, Silvergate Bank experienced a historic deposit run of ~70%. Our risk management and internal controls faced the ultimate stress test—and they held. We successfully navigated that unprecedented crisis, ensuring that no depositor lost a single dollar and no loss was borne by the insurance fund. That execution was a first in modern banking history.

4/5 At no point has any regulatory agency proven that our AML controls failed or that wrongdoing went undetected. Instead, a geopolitical narrative took precedence over objective facts. When the federal government levels its full weight against an individual, the playing field is entirely asymmetric. They possess unlimited resources. For individuals caught in these crosshairs, the choices are severely restricted: 1. Go completely broke trying to fight a multi-year battle in court. 2. "Turn" on individuals or a company you know to be profoundly ethical—even if you have absolutely no dishonest or harmful evidence to give. 3. Settle on a "neither admit nor deny" basis, which historically meant signing away your First Amendment right to defend your reputation.

CAN’T WAIT for what’s going to start getting revealed as a result of this. Is @nic_carter gonna have yet more salacious scoops about federal agency wrongdoing, esp during the Gensler/Operation Choke Point 2.0 era??? 🤞🙏🤔

After 17 years, bitcoin is still widely misunderstood. We partnered with @atlanticrethink to make a short film for the curious ft. @natbrunell, @NSmolenski, and our CEO @josephkelly. Not the crypto story. The bitcoin story. The New Rules of Bitcoin, out today cc @TheAtlantic.

This year everything changed for banks and #bitcoin in the US @epochvc_ wrote a 100 page report on bitcoin adoption by banks with the former CTO of Silvergate @D_CentralBanker It is the first comprehensive and technical resource on the topic Summary and link in comments:

I'm praying for Robert F. Prevost as the College of Cardinals selects a new Pope. Adopt your own Cardinal! praycardinal.com

@_mary_pearson Me too

I am beginning to think I won’t be getting it together to take a family picture and get Christmas cards sent out this year.

@PaulJonna Go get ‘em Paul! 🙏🏻

AB 1955 is dead on arrival. Don’t take my word for it – read Judge Benitez’s Sept. 2023 preliminary injunction order in our federal lawsuit: cdn.prod.website-files.com/63d954d4e4ad42…. Parents have federal constitutional rights to know about their own children’s gender transitions.

St. Thomas More’s trial began today 489 years ago. Pray for us, St. Thomas More, that we may have your fortitude and perseverance in the face of injustice.

@_mary_pearson 😂

You’d think, as someone who goes to mass weekly (and sometimes more!), that I’d have a wardrobe full of easy, go-to, mass outfits. Yet somehow every week I find myself in my closet like, “Mass?? At the Catholic Church?? Whatever will I wear?”

@_mary_pearson Hahahahaha!

When a Protestant asks if I’ve been “born again”

@_mary_pearson Hahahaha so true!

Adulthood is just trying out new diet trends every 6 or so months, and saying things like, “yeah I really like it because I don’t have to think about it,” over and over again until you die.

@_mary_pearson You crack me up!

Reading Augustine’s Confessions in short, few pages bursts every year around for approximately one (1) week leading up to his feast day. On track to finish by the time I’m 40. Follow me for more tips on growing in relationship with the saints.

@_mary_pearson I really struggle with this because I feel like confirmation has been reduced to something you “earn” (by attending the classes and going to the retreats) or to the Protestant version os confirmation as an adult declaration of faith, vs a sacrament of free grace.

@_mary_pearson It 💯 is. I don’t think this was originally even pretended to be for any other reason.

Maybe the way we delay Confirmation until High School as an attempt to bait families into coming to church?