The short seller who famously predicted the collapse of FTX and Silvergate Capital Corporation SI has more stocks to call out and warn investors about.
Short Seller's FTX, Silvergate Wins: Short seller Marc Cohodes was interviewed by Edwin Dorsey of the Bear Cave Newsletter in a Thursday Twitter Spaces segment. Dorsey previously issued a short report on Silvergate.
Cohodes has issued warnings to investors about FTX and Silvergate before both compaies saw a valuation collapse.
“I’m happy, ironically I’m more happy that the government shut down Silvergate’s SEN network than I am about the stock,” Cohodes said.
Cohodes added there is still more room for Silvergate to fall, giving it a value of 4 cents to 14 cents.
“It’s a publicly traded crime scene.”
The mainstream media is lazy and could be co-conspirators in the Sam Bankman-Fried, FTX and Silvergate downfalls, the short seller said.
Benzinga reached out to Cohodes for an interview and did not hear back.
“The media wants to make it a crypto story, but it’s not. This is a worldwide money laundering story through these two networks with a crypto wrapper.”
Cohodes said he warned people about FTX. Some of those people listened, and others who did not got completely destroyed, he said.
“If you’re down 90% in this, you deserved to have lost your a**. If you f*** around, you’re gonna get f***ed.”
Cohodes said he’s not a fan of Cathie Wood, but noted she had the sense to get out of Silvergate before it was too late.
The short seller said it is inexcusable that people went on CNBC and promoted the stock knowing there were problems.
Related Link: Is The Markets Tech Obsession Overshadowing A Crisis Brewing In Regional Banking?
Cohodes Says Signature The Next Bank To Fall: Along with warning investors about Silvergate, Cohodes has a stern warning for investors regarding Signature Bank SBNY.
“The story is going to get bigger,” Cohodes said.
The short seller said there were bad guys laundering money and Signature Bank is connected to it. Signature also has 25% of its deposits related to the cryptocurrency sector, he said.
“This is a worldwide money-laundering story.”
Benzinga has contacted Signature Bank for comment on Cohodes' allegations.
Cohodes added that while Signature Bank shares aren’t down as much as Silvergate and SVB Financial Group SIVB, there’s more to come. Cohodes shared an analogy for those in Signature Bank thinking the stock is safe.
Cohodes said the thought process is similar to “when 90% of the houses are on fire in a block, it’s good news yours isn’t on fire. Cohodes said he would tell those people “not f***ing yet.
“I think we have the goods on these guys.”
Cohodes also added that SVB Financial is a sore subject with him, as he was short the stock last year but covered to go deeper in his short position in Carvana Co CVNA.
“I’m really bitter on this.”
Cohodes said he has turned evidence over to the government on Signature Bank.
The company may have to stop doing certain activities, which could mean they will earn less, he said. The short seller also adds that Silvergate could suffer from fines and sanctions.
“The fines are going to be extravagant.”
Cohodes said he hopes the government steps in and does something, specifically shutting down the Signet network from Signature.
While Cohodoes sees Silvergate Capital collapsing, he doesn’t see it having quite the same penny stock valuation as Silvergate.
“Not saying it’s a zero. If that’s a stock you want to own, knock yourself out.”
Citing the fall of SVB Financial Group, Cohodes said the liquidity issues are not a good thing, adding that higher rates could make people assess risk.
“Everyone wants to think SIlvergate is a one off, but it’s not. The action today (Thursday) indicates there’s more to this.”
SVB Financial was closed on Friday and the FDIC was named as the receiver for the company.
Read Next: Crypto Fallout Claims Another Banking Victim, How The Industry Is Reacting
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