FDIC Implements Deposit Guarantees for Struggling Crypto Lender SVB
- The FDIC affirmed that depositors would have access to their insured funds.
- Silicon Valley Bank has $209 billion in assets and $175.4 billion in total deposits.
- Binance CEO mocks US critics as two banks become insolvent.
On Friday, Silicon Valley start-up’s lender, SVB Financial Group, was shut down by the California Department of Financial Protection and Innovation and then passed on to the Federal Deposit Insurance Corporation (FDIC).
According to a public statement, the FDIC reassured insured depositors that they would have full access to their insured funds, but it is still unclear how many of the bank’s deposits were not insured. The report noted that uninsured depositors would get a receivership certificate for the remaining uninsured money, but there is no guarantee that these funds will be paid out in full.
Notably, Silicon Valley Bank was one of the biggest banks in the USA, with over $209 billion in total assets and $175.4 billion in total deposits. The crypto sector could be impacted severely by the emerging bankruptcy trend among US banks.
Silicon Valley Bank has a history of teaming up with many crypto businesses and trading platforms. According to reports, Silicon Valley Bank was the second biggest lender to crypto startups in 2019, just behind Silvergate Bank, which is now struggling with a liquidity crisis.
Earlier today, Changpeng Zhao, the CEO of Binance, took to Twitter to mock US critics as the two leading banks in the US became insolvent and unable to process customer withdrawals.
I just tweeted a few minutes ago how these anti-crypto incumbent protecting regulatory thugs were never going to 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 the truth as Caitlin does here. https://t.co/dau1jR3yEq
— John E Deaton (@JohnEDeaton1) March 9, 2023
Previously, US Senator Sherrod Brown blamed Silvergate Bank’s insolvency on crypto’s volatility. Crypto lawyer John Deaton argued that the US regulatory authorities have no interest in the truth but in promoting a false narrative that serves their agenda of obstructing crypto adoption.
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