🧵1/Ω A few things about @crossriverbank, a tiny #a16z funded lender that originated more #PPP loans for "small businesses" than anyone besides Chase, BofA, and Wells Fargo, mostly for people who were not their customers.

Also @coinbase's preferred bank.
techcrunch.com/2022/03/30/cro… ImageImage
🧵2/Ω They paid @McKinsey a bunch of money to tell the world that "while most banks originated PPP loans to their own customers, Cross River leads in originations to new customers"
mckinsey.com/industries/fin…
🧵3/Ω Unlike other banks that blew up on "fund banking" recently (*cough* $SBNY $SIVB *cough*) @crossriverbank does their "fund banking" differently:

They package all the loans and sell them to weird "fintech" companies like @Upstart. @mikulaja Image
🧵4/Ω
100,000 #PPP / covid relief loans, mostly to new customers, processed by a super tiny bank @crossriverbank

Basically claiming to have the most incredibly skilled and fastest fraud prevention team at any bank on the planet by orders of magnitude 🚩
nytimes.com/2020/06/23/bus…
🧵5/Ω
Much like criminal mastermind Alan Lane (CEO of $SI) and noted theologian #ScottShay (president of $SBNY), the CEO is deeply religious (and wants you to know it).

They also employ a lot of Haredim, a historically undereducated population in Israel.
en.globes.co.il/en/article-The… Image
🧵6/Ω
It is interesting to note that #BrockPierce, founder of #Tether and part owner of one of the most infamous pedophile rings in Hollywood history (#DigitalEntertainmentNetwork), also employs a team of Haredim.
jpost.com/business-and-i…
🧵7/Ω
Brock Pierce joined the board of $SRAX / #SocialRealty in 2021.
fintel.io/doc/sec-srax-i… Image
🧵8/Ω
$SRAX got its #PPP loans from... wait for it...
@crossriverbank. Image
🧵9/Ω
$SRAX also was just apparently de-listed from the @Nasdaq for failure to comply with filing requirements last week. 🚩
sec.gov/ix?doc=/Archiv… Image
🧵10/Ω
@crossriverbank is also now the main banking partner for @circle of recently de-pegged stablecoin $USDC fame now that their other banks have all blown up.

(@circle banked with 3 out of 4 blown up banks - $SBNY, $SI, and $SIVB, which is amazing).
finance.yahoo.com/news/cross-riv…
🧵11/Ω
Here's another example of #CrossRiverBank's extensive due diligence on those 100,000 #PPP covid loans: #SoberServicesLLC, which stopped existing in 2018, was given a $466,847 loan by @crossriverbank in March 2021. (h/t @BP77California)
ImageImage
Was pointed out by @MikeBurgersburg that @Upstart might just be doing the BaaS front end and @crossriverbank is the original bank, but I have been told by others that #CrossRiverBank ALSO sells loans to @Upstart. Deserves a closer look.

Either way CRB loans arrangement is weird
🧵12/Ω
So the story of @crossriverbank has a lot of drama. It's got #BrockPierce for the pedo connection, #Tether for some Putin, what appears to be massive #PPP / covid relief fraud for the $ part...

Why not sprinkle in a little Ukraine for good measure?
🧵13/Ω
If anyone's looking for stuff to dig through, here's @propublica's list of all #PPP loans originated by @crossriverbank.

This thread has no doubt just scratched the surface.
projects.propublica.org/coronavirus/ba…
🧵14/Ω
If you wonder why a tiny bank like @crossriverbank might shovel fraudulent #PPP / covid relief loans out, maybe it's because they collected ~$233 million in fees according to NYT

ps the fact that NYT took this at face value is one of many reasons it's a national disgrace. Image
🧵15/Ω
#CrossRiverBank has biz lines other than crypto. e.g. in 2022 they loaned $105mm to a luxury condo by shady developers #Bushburg and #Moinian deep in the lowest income neighborhood in all of NYC.

"deal makes no sense" - NY RE reporters.

if economy turns loan will fail. ImageImage
🧵16/Ω
CrossRiver is also one of the only banks besides @silvergatebank / $SI (R.I.P.) to make loans and take crypto as collateral.

They also marketed $WAVES / $USDN, a now collapsed fraud, to customers.

any Waves bag holders need someone to sue?
crossriver.com/weekly-crypto-… ImageImage
🧵17/Ω
@AmerBanker: A bank originating #PPP loan fraud, doing fraudulent round robin lending with $UPST, banking crypto, and lending out actual $ for crypto collateral is "best place to work" 5 yrs in a row.

Remind you of an "innovative" energy company?

"Let us build." ImageImage
🧵18/Ω
So what does the @coinbase / Cross River relationship look like? Well.

Apparently the company that shoveled out fraudulent #PPP loans is in the "compliance" business.

Does @crossriverbank still do compliance for $COIN? Because if so lol. ImageImage
🧵19/Ω
By number of #PPP loans @crossriverbank was #4 in the country. But by dollar figure?

🥈 2nd 🥈

As an aside this brochure seems to be marketed at "woke" which is interesting bc their Haredi employees are among the least "woke" people on the planet
crossriver.com/sites/default/… Image
🧵20/Ω
Apparently @KabbageInc (R.I.P.) did some actual customer facing work w/r/t the enormous number of fraudulent loan applications @crossriverbank processed.

#Kabbage got bought by #AmEx but is now under federal investigation & bankrupt

Sounds like that #Frank "fintech" scam Image
🧵21/Ω
Here's some money quotes about @crossriverbank from Forbes courtesy @finhstamsterdam who knows way more about banks and fintech than I do

Reminds me of criminal mastermind Alan Lane's quote about services $SI (RIP) provided. $SI wasn't a bank it was a "liquidity provider" ImageImageImageImage
🧵22/Ω
The @crossriverbank reviews on @Glassdoor are pretty good actually... though I have to say the bad ones are pretty revealing.

Words you see a lot:

➤ "disorganized" (even in good reviews!)
➤ "incompetent"
➤ "nepotism" (remember how that worked out for $SI?) ImageImageImageImage
🧵23/Ω
Some more reviews of #CrossRiverBank on @Glassdoor I found interesting.

Remember how the c-suite at $SI was family of the CEO? Seems similar.

Also disorganized tech startups are a thing but this isn't a startup. It's a bank. "Move fast, break things" is not OK. ImageImageImageImage
🧵24/Ω
@crossriverbank has been in some hot water in the pre-Jurassic era of a few years ago with not just one but two government agencies that protect consumers: the #FDIC and the #CFPB. (h/t @RasooliSheida, @finhstamsterdam)
fdic.gov/news/press-rel…
files.consumerfinance.gov/f/documents/cf… ImageImageImage
🧵24/Ω
Perhaps now is a good time to mention that a recent study found that 5-14% of all emergency covid #PPP relief funds ended up being "invested" in crypto, particularly among the less educated.

Discuss.
🧵25/Ω
Or that #CrossRiverBank was chosen as one of the banks that will test @federalreserve's new #FedNOW system

That's right folks, you heard it hear first.

They're gonna plug a crypto bank straight into the fed (maybe bc it was so good at #PPP loans)
🧵26/Ω
Really helps to hire the right people with the right political connections sometimes.
🧵27/Ω
So @crossriverbank has connections to #PPP, famous pedos, ultra-orthodox Israelis, and #Tether.

But tbh it's the last two that really mystify me. Because why are a bunch of ultra orthodox hanging around a guy whose co. laundered money for #Hamas?
🧵25/Ω
Perhaps now is a good time to mention that a recent study found that 5-14% of all emergency covid #PPP relief funds ended up being "invested" in crypto, particularly among the less educated.

Discuss.
🧵26/Ω
Or that #CrossRiverBank was chosen as one of the banks that will test @federalreserve's new #FedNOW system

That's right folks, you heard it hear first.

They're gonna plug a crypto bank straight into the fed (maybe bc it was so good at #PPP loans)
🧵27/Ω
Really helps to hire the right people with the right political connections sometimes, especially if they're ready for their turn at the trough.
🧵28/Ω
So @crossriverbank has connections to #PPP, famous pedos, ultra-orthodox Israelis, and #Tether.

But tbh it's the last two that really mystify me. Because why are a bunch of ultra orthodox hanging around a guy whose co. laundered money for #Hamas?
🧵29/Ω
tfw you wasted time researching & screenshooting examples that @crossriverbank's #PPP covid lending was sus af to tweet when you could have just checked the nj biz news and found out #CrossRiverBank is currently under investigation for money crimes.
njbiz.com/cross-river-ba… ImageImageImageImage
@crossriverbank 🧵30/Ω
So @coinbase / @circle / $USDC's bank is under investigation for money crimes (probably because it committed money crimes).

No wonder $COIN is looking for a new office.

Heard Uzbekistan is nice. Has lots of sun and no extradition treaties.
coindesk.com/business/2023/…
🧵31/Ω
"@crossriverbank's less hands-on approach ... may have led it to approve riskier loans... U. of Texas graph shows ~20%¹ of CRB's loans had at least 1 suspicious indicator."

Next highest? 10%

¹ ~$2.6 billion in #PPP $ 😱 (h/t @finhstamsterdam)
🧵32/Ω
😱WOW😱 missed this part about @crossriverbank: The US Government owes Cross River $300 million (⁉️) in loan forgiveness... that it's not willing to forgive.

No wonder so many CRB #PPP loans' status is "Not Disclosed" instead of "forgiven": they have a $300m hole.

#ngmi ImageImageImageImage
🧵33/Ω
I did a whole other thread about the Congressional report on how fintechs (including @crossriverbank) had facilitated fraudulent #PPP / covid relief loans and are now under investigation.
🧵34/Ω
Then I did a whole *other* thread going through @crossriverbank's holding company's annual income statements filed with the state of New Jersey.
🧵35/Ω
One thing that's weird here is that some of these job listings come up as being for something called #CrossTheRiver but logo and address are #CrossRiverBank.
Image

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More from @Cryptadamist

Mar 21
🧵 Quick thread going through $COIN's ludicrous "legal arguments" about why a product called #CoinbaseEarn:

1. is not an investment
2. has no expectation of profit
3. is not a communal activity
4. does not depend on the actions of @coinbase
1. "not an investment"

According to Coinbase there is no way for users to lose their ethereum even if

1. @coinbase gets hacked (user keys gets compromised, etc)
2. there's a bug in the ethereum source code (are lawyers even allowed to comment on this?) Image
2. "not a common enterprise"

Here #Coinbase admits that there is a gathering together of assets, then makes up some nonsense about how bc you can sell them it doesn't count (nvm that the same is true for stocks), then pretends users won't lose if Coinbase makes a mistake (lies). Image
Read 7 tweets
Mar 20
🚨Ω🚨
@Coinbase's bank is being sued for predatory lending in a large class action lawsuit filed ~8 weeks ago.

It gets worse though... Because @CrossRiverBank is also starting to have to sue people for loans that are going bad. Financials only allow 1.6% loss. $COIN

ruh roh
@coinbase @crossriverbank 🧵2/Ω Kinda f'ed up other thread so I'm gonna copy these over here. tl;dr #seemsbad for @CrossRiverBank and $COIN.
Specific allegations about how @CrossRiverBank (@Coinbase's bank! $COIN) broke the law and allegedly defrauded a bunch of people w/predatory "debt relief" lending along with #NewCreditAmerica
Read 19 tweets
Mar 20
👀 lol #ScottShay (AKA #SignatureBank's theologian in residence, also known for his Gordon Gekko routine) got absolutely rekt on the final day of $SBNY trading. which I guess explains that weird bounce from $70 to $100 in the morning

at least a $3 million loss. @NotChaseColeman
@NotChaseColeman oh Scott, your 500,000 shares of $SBNY were an equity allocation of infinite jest.

➤ worth over $150 million at all time high...
➤ $77 million on February 1st...
➤ $50 million on March 9th...

...and now it's a $0.
@NotChaseColeman whoops I read that wrong, I guess the noted theologian only lost $414,000 on the final morning.

gg scott!
Read 4 tweets
Mar 18
Here's @CrossRiverBank's details over at #FDIC. Various addresses, FDIC ID numbers, charter info, etc. in case anyone's looking to dig around.

Note that for their first 5 years they were rated "Needs to improve" as a bank.

#lolbank
banks.data.fdic.gov/bankfind-suite…
@crossriverbank 🧵 Who else didn't know that @CrossRiverBank changed its name from #FirstFinancialBank in 2008?
state.nj.us/dobi/bnk_depos…
🧵 @CrossRiverBank is technically owned by #CRBGroup (seems like it's not the same as @CRBgrp?), a holding company in Fort Lee, NJ. Apparently #JoannaAlbertine is the CFO.

Here's their annual filings in NJ: ffiec.gov/npw/Institutio…
Read 22 tweets
Mar 18
🍴 About to dig in to the congressional report on covid relief / #PPP loan scams. @CrossRiverBank's name comes up 16 times when I ctrl-f.

Reminder this is the most important crypto bank in America. It's @Coinbase and @Circle's bank, among others.
permanent.fdlp.gov/gpo189524/2022…
@crossriverbank @coinbase @circle 🧵2/Ω
@CrossRiverBank et al. "specialized in dubious loans" and "did not get better over time" as "lenders often doubled or tripled their potential misreporting rates in round 3 compared to rounds 1 and 2."

Sounds like (extremely) willful negligence. @oooitscrime
🧵3/Ω
@CrossRiverBank's executives anticipated that people would try to commit #PPP / covid relief fraud early in 2020 (w/in months of American pandemic's start), and yet as noted above 👆 they issued increasing percentages of fraudulent loans (and pocketed increasing fees).
Read 8 tweets
Mar 16
🚨Ω🚨
Here it is folks.

The moment you've been waiting for.

The first time it comes out on the floor of the Congress that we just bailed out a bunch of Chinese tech millionaires with links to the PRC at American citizens' expense...

💥💥~ 1:33:40💥💥
It gets even better when @SecYellen says that there will be no bailouts for anyone who holds more than $250,000 in a rural bank in Oklahoma that collapses [due to the Fed raising rates so quickly].

Trust me when I say you're gonna hear a lot about this for the next forever.
Without even commenting on right vs. wrong, I can just tell you this is the 2024 campaign:

Dems: "YOU ROLLED BACK REGULATIONS!"
Repubs: "YOU BAILED OUT COMMUNIST CHINAMEN!"

ad infinitum.

Here are some very wise words from the very wise wizard Chanos 👇
Read 6 tweets

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