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The bank has been closed by the Californian Department of Financial Protection and Innovation and the Federal Deposit Insurance Corporation (FDIC) has created the Deposit Insurance National Bank of Santa Clara to protect all insured depositors.
According to a Bloomberg report, more than 93% of the bank’s $161 billion in deposits are not insured.
As the 16th largest bank in the United States and a vital part of the venture technology space, the sudden collapse of SVP has sent the tech community reeling. Its stock collapsed by over 60% in 24 hours, wiping over $80 billion in value.
Multiple crypto firms had already moved earlier in the week to pull cash deposits under the bank’s custody, according to three sources familiar with the matter.
This is a developing story and will be updated.
Michael Bodley contributed reporting.
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