![]() ![]() Parker Conrad, the CEO and co-founder of HR platform Rippling, said Friday that his company has learned that some customers' payrolls are being delayed due to the bank's "solvency challenges." "The FDIC covers 250K, but am I going to recover my whole 8 figures?" ![]() "Now that the bank has folded, I just want to know what happens next," Ashley Tyrner, founder of health food delivery company FarmboxRx, told CNN in an e-mail. Stablecoin issuer Paxos and crypto exchange Gemini also tweeted they do not have relationships with the bank.įollowing the bank's collapse on Friday, uncertainty in the startup community also only grew, with founders worrying about getting their money out, making payroll and covering operating expenses. The chief executive of cryptocurrency exchange Binance said in a tweet on Friday it had no exposure to Silicon Valley Bank, as did Tether Chief Executive Paolo Ardoino. Traders have been on guard this week for signs of contagion in the financial sector and beyond from troubles for Silicon Valley Bank and crypto-focused Silvergate, which this week disclosed plans to wind down operations and voluntarily liquidate.īoston-based Circle said last week it had moved a "small percentage" of USDC reserve deposits held at Silvergate to its other banking partners. According to CoinGecko data, its previous all-time low was around $0.97 in 2018, though in 2022 it fell just below $0.99 when cryptocurrency markets were roiled by the collapse of crypto hedge fund Three Arrows Capital. USDC's price usually holds close to $1, making Saturday's drop unprecedented. The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. Used in cryptocurrency trading, they have surged in value in recent years. Stablecoins are cryptocurrencies designed to maintain a constant exchange rate with "fiat" currencies - those backed by a central government rather than a physical commodity such as gold - for example through a 1:1 US dollar peg. Those funds feed my family and pay my bills," said Fields. Like, I'm freaking out."Įtsy warned sellers that some deposits may be delayed due to the failure of Silicon Valley Bank. So they're just holding our funds, and not paying us, and that's a little scary. ![]() ![]() "They're saying they're going to try to pay us on Monday, but they're not sure. "Are you an Etsy seller and didn't get paid today? Neither did I," said Fields on TikTok. Small business owner Amber Fields is getting swept up in the chaos. The video game company said the collapse will not affect its day-to-day operations.Ĭrytpo lender BlockFi, which filed for bankruptcy in November, disclosed it held $227 million with SVB in a bankruptcy filing Friday.īlockFi said in November it had halted withdrawals after facing "significant exposure" to Sam Bankman-Fried's FTX exchange, as well as its sister hedge fund Alameda.īlockFi's money in SVB is not FDIC-insured because it was in a money market mutual fund, the company learned from its bankruptcy trustee early this week.Īnd aerospace manufacturer Rocket Lab held almost 8%, or approximately $38 million, of its total cash at the collapsed bank, it said in a Friday filing. Roblox also said in a filing that 5% of its $3 billion in cash was held at SVB. Kaufman said the company was "hopeful that this will be resolved soon." Camp also said customers could pay full price, which it said would be appreciated. He urged customers to use the code "BANKRUN" to save 40% off all merchandise, in an apparent nod to the run on the bank that may have helped bring down the Silicon Valley lender. I'm sure you've heard the news," co-founder Ben Kaufman said in an email to customers. "Unfortunately, we had most of our company's cash assets at a bank which just collapsed. A toy company based in New York has also gotten caught up in the bank's collapse and was pleading with customers for help keeping it afloat.Ĭamp, a venture-backed retailer, sent an email to customers Friday announcing it was slashing prices and would use sales to help fund its continued operations after much of its money was tied up in the bank failure. ![]()
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