Bitcoin Critic Peter Schiff Liquidates His Euro Pacific Bank In Puerto Rico, Returns 100% Of Deposits
Peter Schiff, a well-known crypto critic, gold advocate and money manager, has reached an agreement with officials to liquidate his Euro Pacific Bank in Puerto Rico.
Euro Pacific Bank, a boutique online bank operating in Puerto Rico, was the subject of an international investigation into its account holders in 2020.
At the time, the bank had $140 million with 8,000 depositors. Some depositors were suspected of tax evasion and money laundering by using the accounts in the bank. The investigation, known as Operation Atlantis and led by the United States and four other countries, examined the bank’s involvement and awareness of these activities.
In June, Euro Pacific Bank’s operations were put on hold by authorities, citing “serious insolvency” cases. Following the decision, the Commissioner of Financial Institutions (OCIF) of Puerto Rico held a press conference, stating that the conclusion [of whether Euro Pacific Bank assisted in their clients committing money laundering and tax evasion] “is not made.”
According to Schiff’s statement, he “admits no legal wrongdoing, either by the bank or by me personally,” according to the official statement.
The Bitcoin skeptic must now liquidate the bank’s access and return 100% — $66.7 million — of deposits to its customers. Schiff will also have to pay $300,000 in fines, the New York Times cited the official settlement papers.
The money manager admitted that he was not at liberty to sell the bank, leaving liquidation “the only feasible option available” since “continuing to own and operate the bank” was no longer “an economically viable option.”
Schiff also claimed that as a result of this dispute, his reputation in the banking industry was “tarnished”.
It was previously reported that the gold champion was ready to accept Bitcoin in case the sale of the bank would have been approved by the authorities.
Schiff has been a prominent crypto critic, often engaging in public online feuds over the years. He continues to insist that Bitcoin “is not a store of value.”
“It has no value to store, just a market price. You cannot save the price. Before something can become money, it must first have underlying value,” he said in one of the Twitter conversations.
Ironically, Schiff’s son is enthusiastic about the crypto industry. Peter shared that Spencer sold all his “silver stocks” and “went all in on Bitcoin,” calling his son “brainwashed.”
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