Last Updated on March 11, 2023 by Bitfinsider
According to a bankruptcy document, crypto lender BlockFi has $227 million in “unprotected” assets in Silicon Valley Bank, which may be in breach of US bankruptcy law.
A California regulator shut down the bank on Friday morning after investors started removing funds in response to the bank’s efforts to strengthen up its balance sheet.
The $227 million is also not insured by the Federal Deposit Insurance Corporation because it is in a money market mutual fund, according to the statement by the U.S. Trustee handling BlockFi’s Chapter 11 bankruptcy case. According to the FDIC’s website, the normal deposit insurance number is $250,000 per depositor, per insured bank, for each account ownership group.
According to the bank’s balance summary statement for that account, “money market mutual fund assets are not a deposit, are not FDIC insured, are not insured by any federal government body, are not guaranteed by the bank, and may lose value.”
Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.
