• Silicon Valley Bank (SVB) has been shut down by the Federal Deposit Insurance Corporation (FDIC).
• SVB’s closure was prompted by a March 8 sale proposal to cover a $1.8 billion loss.
• Some crypto companies, such as Circle and BlockFi, may have exposure to the failed bank.

Silicon Valley Bank Closed by Regulators

California-based Silicon Valley Bank (SVB), a unit of SVB Financial Group, has been shut down, according to an announcement from financial regulators on March 10. The Federal Deposit Insurance Corporation (FDIC) said that the California Department of Financial Protection and Innovation closed SVB today and announced that it had been designated as the receiver for any eligible bank customers who will have access to their insured deposits by March 13.
The cause of this closure was prompted by a March 8 sale proposal through which it aimed to cover a $1.8 billion loss. The firm’s share value fell drastically within one day after third parties advised companies to withdraw funds on March 10; subsequently trading on the company’s shares has since been halted. Executives at the company, including CEO Gregory Becker, CFO Daniel Beck, and CMO Michelle Draper collectively sold millions of dollars worth of stock in the weeks leading up to these events.
The failure marks one of the largest U.S. bank failures in history with its $209 billion assets making it larger than even those during 2008 financial crisis.

Crypto Companies May Have Exposure

Though Silicon Valley Bank is not directly related to the crypto industry, some crypto companies may still have exposure to the failed bank due their banking relationships with them or other factors like investments or partnerships.. Circle held funds with various banks, including Silicon Valley Bank as recently as January; however they now may not hold funds with SVB anymore due to recent transfers between banks reported by TechCrunch . Regardless ,Circle currently holds a quarter of its USDC reserves ($11 billion) in banks altogether .
Additionally bankrupt lending firm BlockFi was reported to have exposure to SVB accordingto U S Trustee filing which stated that BlockFi holds $227 million with them; unfortunately these funds are „unprotected“ and uninsured if their claims stand true .

Investigation and Impact

There is an ongoing investigation into causes behind this closure ; however ,the amount that each party involved owes is yet unclear . As for impact ,this failure marks one of biggest US bank failures ever ,and while some crypto firms may be exposed ,it remains unclear how much money they actually held with SVB specifically . This could result in significant losses for those affected should their claims turn out true .


Silicon Valley Bank’s collapse marks one of the largest bank failures in U.S history; though this isn’t directly linked to cryptocurrency industry some firms such as Circle and BlockFi may be exposed depending upon how much money they actually held with them if any at all . An investigation is underway into what led up this closure but until then those affected await further updates regarding potential losses caused due this incident .

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