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BlockFi holds uninsured funds worth $227M in Silicon Valley Bank

Published date:

February 2, 2026

BlockFi holds uninsured funds worth $227M in Silicon Valley Bank

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A recent court filing revealed that bankrupt crypto lender BlockFi holds $227M worth of non-FDIC insured funds in an MMMF with Silicon Valley Bank.

In the official document, US Trustee Andrew Vara noted that the $227M sum invested by BlockFi is “unprotected.” Moreover, the funds may violate bankruptcy laws.

JUST IN: BlockFi #crypto bank has $227 million in now-collapsed Silicon Valley Bank.
— Watcher.Guru (@WatcherGuru) March 10, 2023

SVB’s balance summary statement for BlockFi’s account stated, “[MMMF investments] are: not a deposit, not FDIC insured, not insured by any federal government agency, not guaranteed by the bank, may lose value.

BlockFi’s account does not comply with SVB’s Depository Agreement, with Vara adding that he had advised BlockFi to safeguard the funds. Although BlockFi agreed to respond to the US Trustee, the bankrupt lender failed to provide proof of compliance before Vara published the court document.

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Similarly, Circle, the issuer of USD Coin (USDC) revealed that Silicon Valley Bank was one of the six firms that managed a fraction of its cash reserves. The stablecoin has lost its peg with USD, with the token’s price dipping as low as $0.88 following SVB’s collapse.

Avalanche (AVAX) also reported that the firm has a $1.6M exposure to Silicon Valley Bank.

Written by

Ayush Pande

Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.

Connect with Ayush on LinkedIn

How we reviewed this article

All Bitcompare articles go through a rigorous review process before publication. Learn more about our Editorial Process and Risk Warning.

Ayush Pande

Written by:

Ayush Pande

Writer

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

Radica Maneva

Reviewed by:

Radica Maneva

Senior Editor

Radica is a Senior Editor at Bitcompare. She has worked for more than a decade at leading publications as an Editor across various industries, including crypto and finance.

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