- BlockFi Bankruptcy Case Filing Reveals Money In SVB: BlockFi filed its Chapter 11 Bankruptcy action due to the FTX collapse, and revealed that they had $227 million in the Silicon Valley Bank’s money market mutual fund (MMMF).
- Silicon Valley Bank MMMF: The US Securities and Exchange Commission regulates these funds, and the FDIC’s federal deposit insurance covers up to $250,000 per fund depositor. SVB offered many mutual fund investment services to its customer.
- Circle’s Failed Withdrawal of Funds: Circle, the firm behind popular USDC stablecoin attempted to withdraw its $3.3 billion from the embattled bank but failed.
Reports have shown that BlockFi also has $227 million in the troubled Silicon Valley Bank, which wasn’t insured. Notably, SVB is not managing the fund directly. As the saga of the Silicon Valley Bank shutdown continues, more victims are emerging. The first to feel the brunt was Circle, the firm behind the popular USDC stablecoin. It attempted to withdraw its $3.3 billion from the embattled bank but failed.