In new tweet, Argo Blockchain PLC announced that it has no exposure to SVB bank and Silvergate closed. It also shows a post responding to the bank’s problems, stating that the Argo block or its subsidiaries are not at risk from bank closures. So, operations will continue regardless of the collapse of these banks.
At collapse of several upper banks recently created chaos in the crypto market and affected many companies. A notable example is the shutdown of Silvergate and Silicon Valley Bank (SVB).
In general, all crypto companies exposed to these banks felt the heat of the downturn at that time. But from Argo Blockchain’s recent statement, it is not part of a bank-linked fund company.
Argo Blockchain Confirms No Exposure To Closed Banks
According to a report, Argo Blockchain has secured some funds in Signature Bank, which later collapsed after Silvergate and SVB. However, the report states that as of March 13, the funds are still safe and available to users.
This is the result of statement from the Federal Deposit Insurance Corporation (FDIC), the United States Department of the Treasury, and Federal Reserve on the same day.
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The statement stated that Signature Bank is not included in the systemic risk linked to closed banks. Thus, the depositors, which belong to the Argo blockchain, can be sure that their funds are safe. The FDIC also received approval from the New York State Department of Financial Services (NYDFS) to be a signature recipient for Signature Bank.
In this regard, the FDIC now has a mandate to transfer all assets of Signature Bank users to Signature Bridge Bank. The idea is to increase the safety level of depositors. Pursuant to NYDFS instructions, the FDIC will monitor the operations conducted at Signature Bridge Bank.
The statement also confirmed that all current Signature Bank borrowers and depositors will become customers of the new Signature Bridge Bank. In addition, they can now access funds through debit cards, ATMs, and checks and carry out regular transactions, as normal banking activities resumed on March 13, according to the statement.
Meanwhile, Share price of Argo Blockchain it has gained 7.89% in 24 hours at the time of writing. According to data from TradingView, the price is at 14,750 pounds.
A Brief On SVB And Silvergate Bank Collapse
Silicon Valley Bank (SVB) had a series of challenges and finally shut down operations on Friday, March 10. reportfinancial institutions collapse due to capital crisis and bank-runs.
The downfall of the bank affected several major digital currency networks, including Dogecoin. Followed by news from the collapse, Dogecoin saw its price plunge and still shows no sign of recovery soon.
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At collapse of Silvergate Bank there was another blow to the industry. Due to new regulatory challenges affecting its operations, the company has halted its financial operations. The news saw the share price, with ticker SI, plummet, hitting the $5 price mark.
But Argo Blockchain is not exposed to SVB, and Silvergate, CircleCoinbase, and others still have funds tied up in closed banks.
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