Tag: Bank

BlockFi warned over $227m stuck in Silicon Valley Bank

BlockFi, a cryptocurrency lending platform, has been warned by the bankruptcy trustee that the $227m the company has in Silicon Valley Bank (SVB) may go against bankruptcy laws.  This is because these funds are allegedly not protected by the Federal Deposit Insurance Corporation’s (FDIC) deposit insurance. It is because this amount is invested in a money market mutual fund, which may be illegal per bankruptcy laws. BlockFi faces scrutiny over lack of FDIC insurance BlockFi had previously filed for bankruptcy in November last year following FTX’s collapse. According to paperwork…

Central Bank of Bolivia Selling Dollars Directly to Citizens as Devaluation Fears Rise – Economics Bitcoin News

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The Central Bank of Bolivia is now selling dollars directly to citizens in order to curb what it is calling a speculative attack that has increased the demand of the population for foreign currency. This rise in demand has been caused by several factors which led the population to believe there might be a devaluation move coming. Central Bank of Bolivia Sells Dollars to Appease Local Market The Central Bank of Bolivia is executing extraordinary measures to supply its internal market with foreign currency. On March 6, the monetary institution…

U.S. Lawmakers Met With Fed, FDIC to Discuss Collapse of Silicon Valley Bank: Source

“I am alarmed by the failure of Silicon Valley Bank, which marks the second largest bank failure in U.S. history,” she said in a statement. “I am closely monitoring and convening Committee members with regulators so myself and members can understand the latest around the closure of Silicon Valley Bank (SVB) by the California Department of Financial Protection and Innovation (DFPI), and the Federal Deposit Insurance Corporation (FDIC) appointed as receiver. I appreciate the DFPI and the FDIC for taking decisive action today, and I remain confident in America’s financial…

USDC Stablecoin and Crypto Market Go Haywire After Silicon Valley Bank Collapses

Crypto was born in the aftermath of – and, to some, in response to – the 2008 crisis. Satoshi Nakamoto’s Bitcoin paper debuted into a world where governments had just propped up the financial system by pouring money into it. Crypto lacks such a centralized authority. If SVB customers, including Circle and its USDC stablecoin, are forced to take a haircut on their money, the repercussions are unclear. Source

USDC depegs as Circle confirms $3.3B stuck with Silicon Valley Bank

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Almost immediately after USD Coin (USDC) issuer Circle revealed it was not able to withdraw $3.3 billion of its $40 billion from Silicon Valley Bank (SVB), the resultant sell-off caused the price of the stablecoin to fall below its $1 mark. On March 9, Circle had initiated a wire transfer for the removal of its funds from SVB as the Federal Deposit Insurance Corporation-insured bank was about to shut operations. However, two days later, on March 11, Circle confirmed that the wire transfers were not completely processed and that $3.3…

Circle discloses $3.3B tied up at Silicon Valley Bank

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On March 10, Blockchain payment technology company Circle confirmed that wires initiated on Thursday to remove balances have not yet been processed, leaving $3.3 billion of its $40 billion USDC reserves at Silicon Valley Bank (SVB). “Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB,” the firm stated in a March 10 tweet. Circle said it is now joining other customers and depositors in calling for…

Filing shows BlockFi has uninsured $227M in Silicon Valley Bank MMMF

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According to a new bankruptcy filing, defunct crypto lender BlockFi has $227 million worth of uninsured funds allocated to a money market mutual fund (MMMF) offered by troubled Silicon Valley Bank (SVB). SVB — one of the U.S’s largest banks and key partners to venture-backed companies — was shut down by the California Department of Financial Protection and Innovation (DFPI) on March 10, with no specifics offered at the time of the closure. The move adds to the recent Silvergate bankruptcy carnage which has seen crypto markets tumble since the…

Circle’s USDC Stablecoin Endures $1B Net Redemptions Since Silicon Valley Bank Shutdown, Nansen Data Shows

CryptoX – Cryptocurrency Analysis and News Portal USDC is the second-largest stablecoin, trailing only Tether’s USDT, and a backbone of the crypto ecosystem. The token’s value is backed by U.S. government bonds and cash-like assets, including a total $11.1 billion of cash deposits at various regulated banks, according to Circle’s website. Source The post Circle’s USDC Stablecoin Endures $1B Net Redemptions Since Silicon Valley Bank Shutdown, Nansen Data Shows appeared first on CryptoX. CryptoX Portal