According to a lawyer representing bankrupt cryptocurrency lender BlockFi Inc, the company is in a stable financial position with access to ample cash reserves, despite having more than $200 million in exposure to Silicon Valley Bank, Bloomberg reported.
According to the report, BlockFi had $227 million invested in a money market mutual fund that Silicon Valley Bank marketed; Nevertheless, the risk is probably related to the performance of the fund, not the bank’s financials. https://t.co/xsgWgQRsLy
— Cointelegraph (@Cointelegraph) March 11, 2023
According to the report, BlockFi had $227 million invested in a money market mutual fund that was marketed by Silicon Valley Bank; however, the risk is likely related to the fund’s performance, not the bank’s finances.
During a bankruptcy hearing on Monday, Christine Okike of Kirkland & Ellis asserted that BlockFi is not in immediate danger and has sufficient funds to continue operating normally, including paying employees and vendors.
Okike reportedly shared;
BlockFi is fine… We have access to cash to operate in the normal course, including paying employees and vendors.
Okike also noted that BlockFi expects to gain access to a significant portion of the cash it holds with Silicon Valley Bank later in the day. Most of BlockFi’s exposure to Silicon Vally Bank is through third-party money market investment funds, which Okike says have no direct impact on the company’s operations.to. The bankruptcy case in question is identified as BlockFi Inc., 22-19361, and is being heard in the US Bankruptcy Court for the District of New Jersey in Trenton.
On March 10, California’s financial regulator shut down Silicon Valley Bank, a major financial institution that supplied venture capital-backed companies. The closure makes it the first bank insured by the Federal Deposit Insurance Corporation to fail in 2023.
On March 11, a bankruptcy filing revealed that defunct cryptocurrency lender BlockFi had $227 million worth of unsecured funds allocated to a money market mutual fund (MMMF) offered by troubled Silicon Valley Bank (SVB).
As previously reported by Cointelegragh, Global banking giant HSBC has announced the acquisition of Silicon Valley Bank UK (SVB UK), a subsidiary of the now-collapsed Silicon Valley Bank, for just £1 ($1.21). According to HSBC, as of March 10, 2023, SVB UK had loans of about £5.5bn ($6.7bn) and deposits of about £6.7bn ($8.1bn).
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