In the midst of the turmoil, a group of shareholders has apparently launched a lawsuit against Silicon Valley Bank’s parent business and several of its officials.
On March 13, multiple news outlets reported that many Silicon Valley Bank stockholders accused the bank, CEO Greg Becker, and chief financial officer Daniel Beck, of fraud.
The case will likely be one of the first filed in court since California regulators shut down the bank on March 10, causing USD Coin to decouple from the dollar amid rumors that Circle had more than $3 billion in stablecoin holdings at the banking institution.
According to the shareholders, SVB, Becker, and Beck suppressed information about the firm’s interest rates, rendering it “especially vulnerable” to a bank run.
Public disclosures from the bank, according to the shareholders, “understated the dangers posed to the company by not revealing that likely interest rate hikes, as detailed by the Fed, had the potential to create irrevocable damage to the company”.
The ongoing difficulties at Signature Bank, Silicon Valley Bank, and Silvergate Bank continue to be announced by regulators, investors, and industry leaders worldwide.
Many crypto businesses, notably BlockFi, which is currently in bankruptcy proceedings, and Gemini, have claimed to have adequate funds to offset exposure to the affected banks or to have no exposure at all.
See Also: Court to Try 2 Russians for Stealing 86 Bitcoins From Crypto Miner
