Signature Bank, a New York-based financial institution that became a big lender in the crypto industry, was ordered to close over the weekend. The bank was part of only a handful of financial institutions allowing customers to deposit crypto assets. 

That didn’t bode well for the bank when crypto plunged as a result of FTX’s collapse last year.

As of Dec. 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits, according to the FDIC.

The Justice Department has begun a preliminary inquiry into the failure of Silicon Valley Bank, a person familiar with the matter said Tuesday. The Justice Department, however did not immediately respond to inquiries about possible investigation.

Justice’s involvement as well as a preliminary investigation by the Securities and Exchange Commission were first reported by The Wall Street Journal. 

Source: usatoday.com

Free Legal Advice

The FDIC will likely step in to protect customer deposits, up to $250,000 per account. If you have deposits in excess of the insurance limit, you may not recover all of your funds. Contact the FDIC for guidance, file a claim for uninsured deposits, and seek legal advice if needed. Keep your deposits within the FDIC insurance limit to ensure protection.

If you were a client of SVB and wish to hire our office or have any questions regarding your legal status you can contact us via our DefendMe Platform (https://defendme.global/) or via email office@defendme.global.