The Euro Pacific International Bank, founded by well-known American stockbroker and Bitcoin critic Peter Schiff, was instructed to halt its activities by regulators in Puerto Rico. Schiff has responded to the news on Twitter by stating that there is no proof of any wrongdoing.
The bank reportedly had overall accumulated losses of nearly $4 million, having reached negative $1.3 million by the end of 2020. The cease and desist letter issued to the bank clearly outlined that “the entity is classified as insolvent.”
Peter Pleads His Case On Twitter
On July 4, Schiff took the matter to his 777K followers to explain his views via an elaborated thread. He commented on why “despite no evidence of crimes,” regulators of Puerto Rico ceased the bank operations. According to him, they should have allowed a highly qualified buyer who had promised to infuse capital well in excess of regulatory thresholds to acquire the bank. He believes that the “bad press” was a big factor behind the move by stating:
“They said that due to the bad press about me, they did not want me owning 4% of a bank, even though they know first-hand the allegations in the media are false.”
According to Schiff, the regulators never notified the 4% stake was a concern; otherwise, he would have reworked the arrangement. Moreover, he claims that they never informed him of their opposition to it and that he first learned of the closure through a stop-and-desist order to shut down the bank. The Euro Pacific Bank website now shows an official notice that is has paused all activity.
Bitcoin Could Solve Peter’s Problems
The anti-Bitcoin zealot once said that his compliance is “so rigorous” that he never accepted customers with relations to Bitcoin, cannabis, and other sectors. The Bitcoin community never misses a golden opportunity to evangelize Bitcoin, especially at the expense of Mr. Schiff. Several Bitcoin enthusiasts expressed their views on the matter by explaining that the digital asset’s strength is its un-censorable network, leading to the ultimate financial freedom.
Peter may never change his mind and see the light like his son, but this fiasco is another example of how Bitcoin as an asset and monetary network can eventually overtake traditional banking and finance.