Provocative short seller goes after Cross River Bank

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Hello everyone,

After coming back from a long break, I thought I had it rough catching up on work. But Coinbase’s recent adventures make my return seem like a walk in the park.

Just when Coinbase thought it was out of the regulatory hot seat, the US Securities and Exchange Commission issued a Wells Notice, leaving the crypto major feeling more exposed than a sunburned tourist.

And as if that wasn’t enough, a sharp-witted short seller who’s been knocking down banks like bowling pins has now set his sights on Cross River Bank – a 15-year-old fintech institution. This could bring Coinbase’s stocks tumbling down.

Marc Cohodes, a part-time chicken farmer who also happens to be a financial wizard, previously predicted the collapses of FTX, Silvergate Bank, Silicon Valley Bank, and Signature Bank. Cohodes is on a winning streak, but as our analysis shows, he may be right yet again.

— Deepti

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🤿 THE DEEP DIVE

Is crypto-friendly Cross River Bank the next to fall?

Since calling out FTX’s corruption in 2022, Cohodes has been able to make a fortune from the closures of Silvergate and Signature. He recently revealed his plan to match donations made by people who profited from shorting the banks, with autism-focused Peace of Heart Community being his chosen charity.

Now he has set his sights on Cross River Bank and is calling for Coinbase, its prominent crypto customer, to be shorted. Though the bank isn’t publicly traded, and therefore immune to short-seller attacks, Cohodes believes Circle – Cross River’s latest customer – is at risk. However, Circle insists that its USD Coin would continue functioning as normal even if the bank collapses.

But will Cross River hold up against the part-time farmer’s scrutiny, or will it crack like a bad egg? Find out more as you read on!

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👀 ALL EYES ON…

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