{"id":562834,"date":"2023-03-13T00:14:55","date_gmt":"2023-03-12T21:14:55","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/silicon-valley-bank-collapse-everything-thats-happened-until-now\/"},"modified":"2023-03-13T00:14:55","modified_gmt":"2023-03-12T21:14:55","slug":"silicon-valley-bank-collapse-everything-thats-happened-until-now","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/silicon-valley-bank-collapse-everything-thats-happened-until-now\/","title":{"rendered":"# Silicon Valley Bank collapse: Everything that\u2019s happened until now"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a24ba9d0f60b\" 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-6a24ba9d0f60b\" 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\/silicon-valley-bank-collapse-everything-thats-happened-until-now\/#%E2%80%9D_Silicon_Valley_Bank_collapse_Everything_thats_happened_until_now_%E2%80%9C\" >&#8221; Silicon Valley Bank collapse: Everything that\u2019s happened until now  &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/silicon-valley-bank-collapse-everything-thats-happened-until-now\/#March_10_Silicon_Valley_Bank_shut_down_by_California_regulator\" >March 10: Silicon Valley Bank shut down by California regulator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/silicon-valley-bank-collapse-everything-thats-happened-until-now\/#March_10_The_world_responds_to_the_banks_crisis\" >March 10: The world responds to the bank\u2019s crisis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/silicon-valley-bank-collapse-everything-thats-happened-until-now\/#March_11_The_crypto_industry_begins_to_feel_the_pain\" >March 11: The crypto industry begins to feel the pain<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/silicon-valley-bank-collapse-everything-thats-happened-until-now\/#March_11_Contagion_fears_spread\" >March 11: Contagion fears spread<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/silicon-valley-bank-collapse-everything-thats-happened-until-now\/#March_12_Regulators_spring_into_action\" >March 12: Regulators spring into action<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Silicon_Valley_Bank_collapse_Everything_thats_happened_until_now_%E2%80%9C\"><\/span>&#8221; Silicon Valley Bank collapse: Everything that\u2019s happened until now  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-48054ca8>The sudden collapse of Silicon Valley Bank (SBV) has quickly unfolded over the course of three days, depegging stablecoins, leading regulators in the United States and United Kingdom to prepare emergency plans and raising fears among small businesses, venture capitalists and other depositors with funds stuck at the California tech bank.<\/p>\n<p>Cointelegraph&#8217;s team compiled a roundup of the latest and major developments surrounding the troubled bank: <\/p>\n<h3><span class=\"ez-toc-section\" id=\"March_10_Silicon_Valley_Bank_shut_down_by_California_regulator\"><\/span>March 10: Silicon Valley Bank shut down by California regulator<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Silicon Valley Bank (SVB) was shut down by California\u2019s financial watchdog on March 10 after announcing a significant sale of assets and stocks aimed at raising additional capital. <\/p>\n<p>The California Department of Financial Protection and Innovation <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fdic.gov\/news\/press-releases\/2023\/pr23016.html\">confirmed<\/a> that Silicon Valley Bank was ordered to close but did not specify the reason for the shutdown. The California regulator <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>ointed the FDIC as the receiver to protect insured deposits. <\/p>\n<p>The California watchdog appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver to protect insured deposits. However, the FDIC only insures up to $250,000 per depositor, per institution and per ownership category. The bank held over $5 billion in funds from major venture capital firms. Silicon Valley Bank is one of the top 20 largest banks in the United States, providing banking services to crypto-friendly venture companies, such as Sequoia Capital and Andreessen Horowitz.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Customers lining up outside of Silicon Valley Bank at its Menlo Park, CA branch. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/SDNrSUC1C0\">pic.twitter.com\/SDNrSUC1C0<\/a><\/p>\n<p>\u2014 Cointelegraph (@Cointelegraph) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Cointelegraph\/status\/1634254701838360577?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<h3><span class=\"ez-toc-section\" id=\"March_10_The_world_responds_to_the_banks_crisis\"><\/span>March 10: The world responds to the bank\u2019s crisis<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Bank of England stated on March 10 that SVB UK will \u201cstop making payments or accepting deposits,\u201d as the central bank intends to apply to the court to place SVB UK into a \u201cBank Insolvency Procedure.\u201d<\/p>\n<p>U.S. depositors <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Cointelegraph\/status\/1634254701838360577\">lined up to withdraw funds<\/a>. According to an unconfirmed report, the FDIC was planning to cover 95% of uninsured SVB deposits, with 50% of them to be paid out in the coming week. <\/p>\n<p>The bank\u2019s downfall was swift, coming less than 48 hours after management <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/s201.q4cdn.com\/589201576\/files\/doc_downloads\/2023\/03\/Q1-2023-Mid-Quarter-Update-vFINAL3-030823.pdf\">disclosed<\/a> that they needed to raise $2.25 billion in stock to shore up operations. Its stock price subsequently plunged, falling over 60% on March 9. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"March_11_The_crypto_industry_begins_to_feel_the_pain\"><\/span>March 11: The crypto industry begins to feel the pain<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Reports emerge of crypto industry exposure to the failed bank. Circle had $3.3 billion in SVB. A spokesperson for Circle told Cointelegraph that \u201cWhile we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle and USDC continue to operate normally.\u201c<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/02bfd5a3-ec58-4c21-a428-c3588df51f20.png\"><figcaption style=\"text-align: center;\"><em>Circle&#8217;s Reserves Composition as of March 9, 2023. Source: Circle<\/em><\/figcaption><\/figure>\n<p>Circle\u2019s USDC stablecoin depegged and lost over 10% of its value. The USDC (USDC) depeg led to a domino effect that knocked several stablecoins from their pegs as well. DAI (DAI), USDD and FRAX were affected. Circle announced that it would use corporate \u201cresources\u201d to cover the shortfall caused by the SVB collapse.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/1c126cbe-90c4-440d-9ae9-51feba81fc3d.png\"><figcaption style=\"text-align: center;\">USDC slowly recovers after losing its $1 peg on March 11. Source: CoinMarketCap<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"March_11_Contagion_fears_spread\"><\/span>March 11: Contagion fears spread<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Reverberations were felt throughout the DeFi community as whales sought to transfer funds away from USDC. DAI issuer MakerDAO issued an emergency proposal to mitigate its $3.1 billion exposure to USDC. Swapping pool Curve Finance saw record-breaking trading of $7 billion on Mach 11. Fear of contagion mounted rapidly, with regional banks seen as particularly at risk, and dire warnings were sounded. At the same time, venture capitalists and others rallied around SVB to express their willingness to continue to work with the bank, should it be purchased and recapitalized. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"March_12_Regulators_spring_into_action\"><\/span>March 12: Regulators spring into action<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regulators in the United States and United Kingdom began to take action to deal with the SVB collapse. U.S. Treasury Secretary Janet Yellen said in an interview that the Treasury was focused on depositors\u2019 needs and would not bail out the bank. U.K Prime Minister Rishi Sunak stated that there were \u201cim<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te plans to ensure the short-term operational and cash flow needs of Silicon Valley Bank UK customers.\u201d<\/p>\n<p>The Bank of London has made a formal bid for the U.K. branch of SVB. <\/p>\n<p>Bloomberg reported that the FDIC had been conducting an auction process for SVB on the night of March 11. The Wall Street Journal <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/regulators-to-hold-auction-for-silicon-valley-bank-9c05701f\">reported<\/a> that bidding closed at 14:00 ET March 12. Elon Musk <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/elonmusk\/status\/1634374859043270678\">said<\/a> in a tweet that he was \u201copen to the idea\u201d of buying the bank. The administration of U.S. President Joe Biden is also reported to be preparing \u201cmaterial action.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/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\/silicon-valley-bank-collapse-everything-that-s-happened-until-now\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Silicon Valley Bank collapse: Everything that\u2019s happened until now &#8220; The sudden collapse of Silicon Valley Bank (SBV) has quickly unfolded over the course of three days, depegging stablecoins, leading regulators in the United States and United Kingdom to prepare emergency plans and raising fears among small businesses, venture capitalists and other depositors with&#8230;<\/p>\n","protected":false},"author":1,"featured_media":562835,"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\/4ac233a7-8b48-4856-b90c-1ea3e25a8a8a.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74868,71939,117,33355,4966,67874],"class_list":["post-562834","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-defi","tag-banks","tag-business","tag-silicon-valley","tag-united-kingdom","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/562834","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=562834"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/562834\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/562835"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=562834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=562834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=562834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}