Home > NEWS > BlockFi in no immediate danger, despite Silicon Valley Bank exposure: Report

BlockFi in no immediate danger, despite Silicon Valley Bank exposure: Report

Christine Okike, a lawyer representing BlockFi at its bankruptcy hearing, claimed that BlockFi is not in immediate danger and has sufficient funds to continue operating normally.

According to Bloomberg, the bankrupt login password lender BlockFi Inc. Although the company has more than $200 million in exposure to Silicon Valley Bank, the company is operating smoothly and has ample capital reserves, according to its lawyer.

At Monday's bankruptcy hearing, Kirkland&Ellis 's Christine Okike declared that BlockFi is not in immediate danger and that there are sufficient funds to function normally again, including paying employees and suppliers' salaries.

Koike Yuriko is reported to say:

"BlockFi is very good,... You can get cash for normal operation, including paying employees and suppliers' salaries.

Okike also mentioned that BlockFi will receive a very large portion of the cash held by Silicon Valley banks later in the day. Most of BlockFi's exposure to Silicon Valley banks is through third-party financial market mutual funds, which Okike claims are not directly related to the company's operations. The bankruptcy case was identified as BlockFi Inc.,22-19361 and is now being heard by the New Jersey bankruptcy Court in Trenton.

On March 10th California's financial regulator shut down Silicon Valley Bank, a large financial institution that provides services to venture capital firms. The shutdown makes it the first financial institution insured by the Federal Deposit Insurance Corporation to fail in 2023.

BlockFi, a reinstated password lender, will use $227 million worth of uninsured funds to manage financial market mutual funds (MMMF) provided by beleaguered Silicon Valley Bank (SVB), according to a bankruptcy filing.

Hang Seng Bank, a leading commercial bank around the world, has announced the recovery of the bankrupt Silicon Valley Bank of America (SVB UK) for 1 yuan ($1.21), Cointelegraph reported. As of March 10, SVB UK loans were worth about 550000 euros ($6.7 billion) and deposits were about 670000 euros ($8.1 billion), according to Hang Seng Bank.

by Judith BannermanQuist
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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