BlockFi in no immediate danger, despite Silicon Valley Bank exposure: Report

According to a lawyer representing the bankrupt crypto lender BlockFi Inc.,the institution is successful a unchangeable fiscal presumption with entree to ample currency reserves, contempt having implicit $200 cardinal successful vulnerability to Silicon Valley Bank, Bloomberg reported.

According to the report, BlockFi had $227 cardinal invested successful a wealth marketplace communal money that Silicon Valley Bank marketed; nevertheless, the hazard is astir apt related to the show of the fund, not the bank's financials. https://t.co/xsgWgQRsLy

— Cointelegraph (@Cointelegraph) March 11, 2023

During a bankruptcy proceeding connected Monday, Christine Okike of Kirkland & Ellis claimed that BlockFi is not successful contiguous information and has capable funds to proceed operating normally, including paying employees and vendors.

Okike reportedly shared;

BlockFi is good … We person entree to currency to run successful the mean course, including paying employees and vendors.

Okike besides noted that BlockFi expects to summation entree to a important information of currency held with Silicon Valley Bank aboriginal successful the day. The bulk of BlockFi's vulnerability to Silicon Vally Bank is done third-party money-market communal funds, which Okike claimed had nary nonstop interaction connected the company's operations. The bankruptcy lawsuit successful question is identified arsenic BlockFi Inc., 22-19361, and is being heard successful the US Bankruptcy Court for the District of New Jersey successful Trenton. 

Related: Silicon Valley Bank collapse: Everything that’s happened until now

On March 10, California's fiscal regulator unopen down Silicon Valley Bank, a large fiscal instauration catering to venture-backed companies. The shutdown makes it the archetypal Federal Deposit Insurance Corporation-insured slope to neglect successful 2023. 

On March 11, a bankruptcy filing revealed that defunct crypto lender BlockFi had $227 cardinal worthy of uninsured funds allocated to a wealth marketplace communal money (MMMF) offered by the troubled Silicon Valley Bank (SVB).

As antecedently reported by Cointelegragh, Global banking elephantine HSBC has announced the acquisition of Silicon Valley Bank UK (SVB UK), a subsidiary of the now-collapsed Silicon Valley Bank, for conscionable 1 British lb ($1.21). According to HSBC, arsenic of March 10, 2023, SVB UK had loans worthy astir 5.5 cardinal pounds ($6.7 billion) and deposits of astir 6.7 cardinal pounds ($8.1 billion).