After the collapse of the US giant bank, Binance CEO Made a Statement on the Subject!

Silicon Valley Bank was shut down today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as its trustee. Binance The CEO spoke on the matter.

All insured depositors will have full access to their insured deposits until Monday morning.

The FDIC will pay uninsured depositors an advance dividend and a buyer’s certificate for the remaining amount of their uninsured funds. Future dividends may be paid to uninsured depositors as the FDIC sells Silicon Valley Bank’s assets.

Banking regulators took over Silicon Valley Bank, causing the biggest bank failure since the Great Depression. The bank in question was the 18th largest bank in the USA in terms of total assets.

Binance CEO CZ Says Funds Are Safe

With this cryptocurrency Exchange Binance CEO Changpeng Zhao (CZ) also made a statement on the subject. Zhao said Binance has no exposure to Silicon Valley Bank and the funds are “SAFU”.

#Binance does not have exposure to SVB. Funds are #SAFU.

— CZ 🔶 Binance (@cz_binance) March 10, 2023

A Bloomberg official explained the reason for the collapse of Silicon Valley Bank:

“Several factors combined to cause the distress. Some of these are specific to the SVB, while others are the source of broader banking concerns. Behind many of these are the rapid rate hikes that the US Federal Reserve introduced last year to contain the highest inflation in decades.

One consequence of these increases that has been particularly challenging for the SVB has been the sharp decline in high-flying technology companies, the source of its rapid growth. As venture capital dried up, these firms turned to their deposits for the cash they needed to keep going.”

*Not investment advice.