Contents
- The reason for SVB’s insolvency is still unknown
- Bitcoin Investor Predicted Signature Bank Collapse
Ripple CTO Beats Back This Crypto-Friendly Insolvent Bank, Advises His Twitter Followers
Yuri Molchan
David Schwartz has shared his views on the recent Silicon Valley Bank case
Read U.TODAY on
Google News
Chief technology officer of Ripple Labs, one of the co-founders of XRPL, David Schwartz has taken to Twitter to comment on some aspects of the recent SVB case. He also shared a recommendation to keep funds in it.
Previously, the company’s CEO Garlinghouse officially admitted that Ripple had exposure to Silicon Valley Bank.
The reason for SVB’s insolvency is still unknown
Sschwartz tweeted that details of KYC policies or data on those to whom the crypto-friendly bank made loans do not reveal why the bank went bankrupt and “do not appear to have anything to do” with SVB going bankrupt.
He added that “anyone who keeps uninsured funds on deposit in an insolvent bank is not a smart person”, basically urging users to withdraw their money from the insolvent bank.
As reported by U.Today earlier, the head of the fintech company Ripple, Brad Garlinghouse, gave an official statement on Twitter, saying that Ripple had a small exposure to the aforementioned bank as a banking partner – they kept a small part of their cash in it .
Nevertheless, SVB going bankrupt will not interfere with Ripple’s daily operations and no damage has been done, according to the CEO.
Bitcoin Investor Predicted Signature Bank Collapse
After SVB and Silvergate, another crypto-friendly institution, Signature Bank, went bust. Before that news was announced, prominent investor and financial expert Robert Kiyosaki, widely known for his book “Rich Dad, Poor Dad,” tweeted that he expected a third bank to fail after Silvergate and SVB. Being a Bitcoin advocate, before that he posted a recommendation to his followers to acquire more Bitcoin, physical gold and silver coins.
Kiyosaki has been tweeting about a coming financial crisis since early 2020 when the pandemic began, and also tweeted about “fake USD” that the US government has been printing to prop up the economy and bail out big businesses and banks. Incidentally, SVB and Signature bank must also be bailed out.
When the two former banks became insolvent, the Bitcoin price was driven to the $28,000 level, as investors switched to the digital currency during times of instability in the banking sector.
