Today, Silicon Valley and even the entire United States were shocked!

Silicon Valley Bank (SVB) suddenly announced: it has no money and has gone bankrupt!

This is not a small bank, but a large commercial bank with nearly 40 years of history - the 15th largest bank in the United States.

Just on February 14 of this year, SVB was listed on Forbes magazine's "Top 100 Banks in the United States in 2023" list, ranking 5th in California and 20th in the United States with its outstanding profitability.

After just announcing the news of its bankruptcy, it became the largest bank to go bankrupt since the financial crisis in 2008!

The parent company of Silicon Valley Bank (SVB) said late Wednesday it is seeking to raise more than $2 billion after facing huge losses on the sale of a large number of bonds.

News that a bank appears desperate to raise cash can scare all investors and depositors.

The stock plunged 60% on Thursday — shortly after trading ended, sparked by a string of headlines about tech companies and founders rushing to pull money from banks — before a 20% plunge ensued.

The market value evaporated by US$9.4 billion in one day!

SVB then announced a suspension of trading and directly declared bankruptcy!

It’s so fast! It’s so Silicon Valley!

Another important reason why SVB’s bankruptcy caused such a big shock in Silicon Valley and even Wall Street is the special nature of this bank.

It is the bank of choice for America’s hottest startups!

It is not just involved in the traditional commercial banking field. What is special about it is that its clients are mainly concentrated in providing financing services to emerging technology companies supported by American venture capital funds, information technology, life sciences, clean energy industries, etc.

Most of its clients are startups in the Silicon Valley and well-known technology companies. In addition, SVB also serves as a bridge between investment institutions and start-ups.

The announcement of bankruptcy means that SVB will place nearly $175 billion in customer deposits under the control of the Federal Deposit Insurance Corporation (FDIC), including funds from some of the best-known companies in the technology industry.

Now the California Department of Financial Protection and Innovation has closed SVB and appointed the FDIC as receiver. The FDIC, in turn, created the National Bank of Santa Clara, which now holds SVB’s insured deposits.

The Federal Deposit Insurance Corporation said in an announcement that insured depositors can withdraw their deposits as late as Monday morning.

However, insurance coverage is limited to $250,000 per depositor, per bank, per account ownership category.

Obviously, this amount of insurance money is just a drop in the bucket for many Silicon Valley companies... (Here is also a reminder for everyone, don't deposit more than $250,000 in a bank ==...)

Of course, the most important thing is the impact on our cryptocurrency circle. CRICL, the parent company of USDC, the second largest stablecoin in the cryptocurrency circle, has 25% of its cash deposited in six banks, and Silicon Valley Bank is one of them. This afternoon, DAI and USDC both broke away from the anchor.

Again, hold on to your cash and wait for the big pie of ten thousand!!!