- The FDIC said depositors will have access to their insured deposits.
- The Silicon Valley bank has more than $209 billion in assets and $175.4 billion in total deposits.
- The Binance CEO mocked US critics as two banks became insolvent.
On Friday, Silicon Valley startup lender SVB Financial Group was shut down by the California Department of Financial Protection and Innovation and transferred to the Federal Deposit Insurance Corporation (FDIC).
According to an official statement, the FDIC has informed insured depositors that they will have full access to their insured deposits, but it is still unclear how many of the bank’s uninsured deposits. The report indicated that uninsured depositors will receive a custody certificate for the remaining uninsured funds, but there is no guarantee that these funds will be paid in full.
Notably, Silicon Valley Bank was one of the largest banks in the United States, with total assets of over $209 billion and total deposits of $175.4 billion. The cryptocurrency sector could suffer major disadvantages from the ensuing bankruptcy trend among US banks.
Silicon Valley Bank has a history of cooperating with many crypto companies and trading platforms. According to reports, the Silicon Valley bank ranked as the second largest lender to crypto startups in 2019, behind only Silvergate Bank, which is now grappling with a liquidity crunch.
Earlier in the day, Binance CEO Changpeng Zhao took to Twitter to mock US critics as the two largest US banks have become insolvent and unable to process customer withdrawals.
I just tweeted a few minutes ago how these current anti-crypto regulatory thugs will not let the truth get in the way of the BS narrative they intend to promote. All we can do is keep hitting them with facts and truth like Caitlin does here. https://t.co/dau1jR3yEq
— John E. Deaton (@JohnEDeaton1) March 9, 2023
Previously, US Senator Sherrod Brown blamed the Silvergate bankruptcy on cryptocurrency volatility. Cryptocurrency lawyer John Deaton has argued that US regulatory authorities are not interested in the truth but in promoting a false narrative that fits with their agenda of hindering cryptocurrency adoption.
Post-FDIC Forms Deposit Insurance for Crypto Startup Lender SVB Appears for the First Time in Coin Issue.