Last Updated on March 11, 2023 by Bitfinsider
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.”
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