FDIC Offers Deposit Cover For Struggling Crypto Firm SVB By CoinEdition

• The FDIC confirmed that depositors would be able to access their insured funds.
• Silicon Valley Bank has more than $209 trillion in assets and $175.4 million in total deposits.
• Binance CEO joked about two bankrupt US banks

Friday saw the announcement of the California Department of Financial Protection and Innovation’s closure of Silicon Valley’s start-up lender, SVB Financial Group, and its transfer to the Federal Deposit Insurance Corporation (FDIC).

According to a statement, the FDIC informed insured depositors that they would be able to access their insured funds, but it is still not known how much of the bank’s total deposits were not insured. The report stated that uninsured depositors would receive a receivership certificate for any remaining uninsured funds, though there is no guarantee that these funds can be fully recovered.

Notably, Silicon Valley Bank is one of the largest financial institutions in the US, with more than $209 trillion in total assets and $175.4 million in total deposits. This could lead to significant trouble for the crypto sector if US bank bankruptcies become more common.

Silicon Valley Bank has a history of partnering with many trading platforms and crypto-businesses. Reports indicate that it was second only to Silvergate Bank in lending to crypto startups, and the current liquidity crunch is having a major impact.

This morning, Binance CEO Changpeng Zhao took to Twitter to mock US detractors, as two of the country’s major banks have gone into bankruptcy and cannot process customer withdrawals.

Previously, US Senator Sherrod Brown pinned Silvergate Bank’s insolvency on crypto’s volatility. Crypto lawyer John Deaton argued that US regulators do not focus on the facts, but rather on pushing a false narrative to discourage crypto adoption.

The FDIC’s post, which provided deposit coverage for the embattled crypto startup lender SVB, was the lead story on CoinEdition.

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