{"id":562212,"date":"2023-03-11T04:27:16","date_gmt":"2023-03-11T01:27:16","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/filing-shows-blockfi-has-uninsured-227m-in-silicon-valley-bank-mmmf\/"},"modified":"2023-03-11T04:27:16","modified_gmt":"2023-03-11T01:27:16","slug":"filing-shows-blockfi-has-uninsured-227m-in-silicon-valley-bank-mmmf","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/filing-shows-blockfi-has-uninsured-227m-in-silicon-valley-bank-mmmf\/","title":{"rendered":"# Filing shows BlockFi has uninsured $227M in Silicon Valley Bank MMMF"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ec606762f5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ec606762f5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/filing-shows-blockfi-has-uninsured-227m-in-silicon-valley-bank-mmmf\/#%E2%80%9D_Filing_shows_BlockFi_has_uninsured_227M_in_Silicon_Valley_Bank_MMMF_%E2%80%9C\" >&#8221; Filing shows BlockFi has uninsured $227M in Silicon Valley Bank MMMF &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Filing_shows_BlockFi_has_uninsured_227M_in_Silicon_Valley_Bank_MMMF_%E2%80%9C\"><\/span>&#8221; Filing shows BlockFi has uninsured $227M in Silicon Valley Bank MMMF &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvOWMxZWNlYWEtOTdhZC00MWI0LThjZjMtNjQxZDM1ZjEzZGVkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>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). <\/p>\n<p>SVB \u2014 one of the U.S\u2019s largest banks and key partners to venture-backed companies \u2014 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. <\/p>\n<p>The move adds to the recent Silvergate bankruptcy carnage which has seen crypto markets tumble since the crypto-friendly bank\u2019s financial woes came to light at the beginning of March. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Few more bank collapses then up only<\/p>\n<p>\u2014 sassal.eth  (@sassal0x) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/sassal0x\/status\/1634337623010598912?ref_src=twsrc%5Etfw\">March 10, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Looking at the ongoing BlockFi bankruptcy case, a March 10 filing <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/LaurenSHirsch\/status\/1634315816106618880\/photo\/1\">indicates<\/a> that the firm has $227 million worth of capital in an MMMF offered by SVB. <\/p>\n<p>Notably, the filing highlights a balance summary statement from SVB which states that BlockFi\u2019s investment is not a Federal Deposit Insurance Corporation (FDIC) insured deposit, not insured by any federal government agency and \u201cnot guaranteed by the bank.\u201d <\/p>\n<p>The FDIC\u2019s federal deposit insurance covers up to $250,000 per depositor, however it does not cover the scope of money market funds. <\/p>\n<p>A money market mutual fund invests in highly liquid near-term instruments such as cash, cash equivalents and high-quality short-term debt instruments, and is regulated by the U.S. Securities and Exchange Commission. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>$920B is the number to watch now that crypto\u2019s trillion-dollar total market cap is gone<\/em><\/strong><\/p>\n<p>Investors are issued fund shares in exchange for their capital, and as such, BlockFi\u2019s funds may not be at risk despite SVB\u2019s troubles.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Is this a regular MMF, not affiliated with SVB, custodied at SVB or its securities affiliate? The SVB receivership shouldn&#8217;t affect that. The MMF is not FDIC insured, but the shares&#8217; value would depend on what&#8217;s in the MMF, not what h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens to SVB.<\/p>\n<p>\u2014 Matt Waters (@mattwwaters) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/mattwwaters\/status\/1634328514429169666?ref_src=twsrc%5Etfw\">March 10, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>SVB <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.svb.com\/liquidity-management\/deposits-and-investments\/svb-cash-sweep\">offered<\/a> several mutual fund investment services, but according to its website it doesn\u2019t appear to have managed any of the funds itself. The firm lists big names such as BlackRock, Morgan Stanley and Western Asset Management as the fund managers. <\/p>\n<p>As such, the risk to BlockFi in this instance is most likely hindered by the fund\u2019s performance, and not anything related to SVB\u2019s financial woes. <\/p>\n<p>One firm that looks to be directly impacted by the SVB closure \u2014 and the Silvergate bankruptcy \u2014 is USD Coin (USDC) issuers Circle. <\/p>\n<p>According to the company\u2019s latest audit report, as of Jan. 31, $8.6 billion, or roughly 20% of its reserves, were held up in several U.S. financial institutions including SVB, Silvrgate and Bank of New York Mellon. <\/p>\n<p>The exact value held up in SVB and Silvergate is unclear, however Circle issued a statement via <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> on March 10 noting that the firm and USDC will continue to \u201coperate normally\u201d as it awaits \u201cclarity on how the FDIC receivership of SVB will impact its depositors.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25%  portion of USDC reserves held in cash.  While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle &amp; USDC continue to operate normally.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/NU82jnajjY\">https:\/\/t.co\/NU82jnajjY<\/a><\/p>\n<p>\u2014 Circle (@circle) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/circle\/status\/1634341007306248199?ref_src=twsrc%5Etfw\">March 10, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>At the time of writing, USDC has dropped below the $1 peg to sit at $0.98 as per CoinGecko data.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/filing-shows-blockfi-has-uninsured-227m-in-silicon-valley-bank-mmmf\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Filing shows BlockFi has uninsured $227M in Silicon Valley Bank MMMF &#8220; 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 \u2014 one of the U.S\u2019s largest banks and key&#8230;<\/p>\n","protected":false},"author":1,"featured_media":562213,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/9c1eceaa-97ad-41b4-8cf3-641d35f13ded.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74888,77595,4978,71939,117,33355],"class_list":["post-562212","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-banking","tag-lending","tag-bankruptcy","tag-banks","tag-business","tag-silicon-valley"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/562212","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=562212"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/562212\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/562213"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=562212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=562212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=562212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}