Mar 11, 2023
BlockFi: $227M in Uninsured Funds Allocated to SVB Money Market Mutual Fund
Crypto lender BlockFi has been hit with a bankruptcy filing, with the firm allocating $227 million worth of uninsured funds to a money market mutual fund (MMMF) offered by the now-closed Silicon Valley Bank (SVB). The closure of SVB, one of the U.S’s largest banks, has caused a stir in the crypto markets, with the Silvergate bankruptcy coming to light at the same time.
The filing indicates that the funds allocated to SVB are not insured by the Federal Deposit Insurance Corporation (FDIC), and are not guaranteed by the bank. Money market mutual funds invest in highly liquid near-term instruments such as cash, cash equivalents and high-quality short-term debt instruments, and are regulated by the U.S. Securities and Exchange Commission. As such, the risk to BlockFi in this instance is most likely hindered by the fund’s performance, and not anything related to SVB’s financial woes.
The closure of SVB has also affected USD Coin (USDC) issuer Circle, with the company’s latest audit report showing that 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.
Circle issued a statement via Twitter on March 10 noting that the firm and USDC will continue to “operate normally” as it awaits “clarity on how the FDIC receivership of SVB will impact its depositors.”
At the time of writing, USDC has dropped below the $1 peg to sit at $0.98 as per CoinGecko data.
The news of SVB’s closure has caused a stir in the crypto markets, prompting many to consider alternative ways to promote and sell their Non-Fungible Tokens (NFTs) and crypto assets. Many are turning to NFT marketing agencies and web3 agencies to help them navigate the crypto space and maximize their returns.
NFT marketing agencies specialize in helping companies promote their NFTs and crypto assets, as well as helping them to create successful marketing campaigns on social media platforms such as Twitter. Web3 agencies, on the other hand, provide a range of services such as blockchain development, smart contract audit, dApp development, and more.
For those looking to make money from selling NFTs, it is important to find a reliable NFT marketing agency or web3 agency to help them navigate the crypto space and ensure they get the best return on their investments.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
