What Happened on Mar. 10th | Silicon Valley Bank, a Bigger Problem
The bank, which was founded nearly 40 years ago, has lost $1.8 billion in the sale of U.S. treasuries and mortgage-backed securities that it had invested in, owing to rising interest rates.
Shares of SVB Financial Group, the parent company of Silicon Valley Bank, plunged more than 60% on Thursday and fell nearly 20% further after the bell. Silicon Valley venture capital godfather Peter Thiel's Founders Fund advised clients to pull their money from the bank. In addition, there are reports that some of Silicon Valley Bank's websites are down and dozens of venture capitalists are recommending pulling assets from it.
Silicon Valley Bank is the most important bank in the tech startup field, it provides financing for almost half of U.S. Tech startups. The bank also provides services to notable names in the crypto industry, such as Circle. If the bank fails, following Silvergate, it could bring another blow to the crypto industry.
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New York Attorney General Says $ETH Is Security in Lawsuit Against KuCoin: New York State Attorney General Letitia James filed a lawsuit against KuCoin on Thursday, alleging the crypto exchange is an unregistered commodity and securities broker and dealer that offers securities without registering with the Office of the Attorney General.
A Small Portion of $USDC's reserve Held in the Troubled Silicon Valley Bank: Circle's stablecoin $USDC has reserves in a number of regulated financial institutions in the United States, including Silicon Valley Bank and Silvergate.
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