BlockFi’s Uninsured $227 Million In Silicon Valley Bank Raises Concerns, Filing Shows

A recent filing has raised concerns about crypto lending firm BlockFi’s $227 million raise from Silicon Valley Bank, which reportedly lacks insurance. Many are questioning the safety of customer funds in the event of a hack or data breach with no insurance policy in place. This news highlights the importance of due diligence when investing in cryptocurrency-related ventures.

BlockFi, the crypto lender, has reportedly kept $227 million in Silicon Valley Bank’s money market mutual fund (MMMF) that was not insured by the Federal Deposit Insurance Corporation (FDIC) or any other federal government agency. The troubled bank does not directly manage the fund, and BlockFi’s risk will depend on its performance rather than Silicon Valley Bank’s financial issues. Meanwhile, the Silicon Valley Bank shutdown continues to affect more victims, including Circle, the firm behind the popular USDC stablecoin. The bank had reportedly invested in many portfolio companies and fund managers, leading to calls for its continuity from investors and firms.

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