Warren and AOC Probe SVB's Ties with Tech Clients and Investors

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Source: CoinDesk
Warren and AOC Probe SVB's Ties with Tech Clients and Investors
Photo: CoinDesk
TL;DR

Senators Elizabeth Warren and Alexandria Ocasio-Cortez have sent letters to crypto companies Circle and BlockFi, among others, asking why they banked at Silicon Valley Bank (SVB), which recently collapsed. The lawmakers are looking for more information on the "mutual backscratching dynamic" between SVB and venture capitalists, in which the bank treated VCs and other high-rolling depositors to extensive lines of credit and luxurious "white glove" services. Circle and BlockFi held approximately $3.5 billion in uninsured deposits at SVB, of which Circle alone was responsible for $3.3 billion.

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