Friday, March 17, 2023

A Lot Of Crypto Cash Was Parked At SVB - So..., Our Real Money Bailed Out Their Fake Money?

decrypt  |  As the fallout from the stunning collapse of Silicon Valley Bank (SVB) plays out, numerous crypto companies have signaled their exposure to the bank, which long maintained a reputation as one of the most prominent lenders to tech startups in the world.

The bank’s closure Friday by the California Department of Financial Protection marked the second-largest bank failure in American history, after the undoing of Washington Mutual during the financial crisis of 2008. Silicon Valley Bank reported $212 billion in assets last quarter.

The stock (SIVB) began spiraling late Wednesday after rumors circulated that the institution was seeking an acquisition after failing to raise sufficient capital to cover its obligations. In the hours and days that followed, numerous venture capital funds reportedly advised their clients to withdraw their funds, resulting in $42 billion of withdrawals initiated on Thursday, constituting a run on the bank. On Friday morning, the Nasdaq halted trading of SIVB shares.

Though it was venture capital firms and tech startups that were most severely affected by the SVB scare on Friday, numerous crypto companies have also disclosed their exposure to the bank. Here’s a running list of the crypto firms caught in the crosshairs of SVB's collapse, along with those that have publicly claimed they avoided the damage.

Note: On Sunday, U.S. Federal Reserve Chairman Jerome Powell, Treasury Secretary Janet Yellen, and Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg issued a joint statement saying that all Silicon Valley Bank depositors would be made whole and have access to their funds on Monday, March 13. The Federal Reserve is now investigating the bank's failure.

Crypto companies that had money in SVB

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