- The FDIC said depositors will have access to insured deposits.
- Silicon Valley Bank has over $209 billion in assets and $175.4 billion in total deposits.
- Binance CEO mocks US critics when two banks go bankrupt
On Friday, Silicon Valley start-up lender SVB Financial Group was closed by the California Department of Financial Protection and Innovation and transferred to the Federal Deposit Insurance Corporation (FDIC).
In a public statement, the FDIC said it would allow insured depositors full access to its insured deposits, but it is still unclear how much of the bank’s deposits were uninsured. The report states that uninsured depositors will obtain a trustee certificate for their remaining uninsured funds, but there is no guarantee that these funds will be paid in full.
Notably, Silicon Valley Bank is one of the largest banks in the United States, with total assets of over $209 billion and total deposits of over $175.4 billion. The cryptocurrency sector could suffer a significant setback from the ensuing trend of US bank failures.
Silicon Valley Bank has a history of working with many cryptocurrency businesses and trading platforms. According to reports, Silicon Valley Bank ranked as the second largest lender to cryptocurrency startups in 2019, behind only Silvergate Bank, which is currently battling a liquidity crisis.
Earlier today, Binance CEO Changpeng Zhao took to Twitter to mock US detractors after two key US banks went bankrupt and were unable to process customer withdrawals.
Previously, US Senator Sherrod Brown blamed the collapse of Silvergate Bank on crypto volatility. Crypto attorney John Deaton has argued that US regulators are not interested in the truth, but in promoting false narratives that fit their agenda of impeding crypto adoption. .
Post FDIC Forms Deposit Insurance for Troubled Crypto Start-up Lender SVB first appeared in Coin Edition.
Watch the original on CoinEdition
Get the news you need
Read market-moving news with a personalized feed of the stocks you care about.
get the app