David Schwartz shared his perspective on the recent Silicon Valley Bank case
Ripple Labs CTO, one of the co-founders of XRPL, David Schwartz took to Twitter to comment on some aspects of the recent SVB case. He also shared a recommendation on the conservation of funds.
Previously, the company’s chief executive, Garlinghouse, officially admitted that Ripple has exposure to Silicon Valley Bank.
The reason for SVB’s insolvency remains unknown
Sschwartz tweeted that details on KYC policies or data on who the crypto-friendly bank gave loans to don’t reveal why the bank went bankrupt and “seems to have nothing to do” with the bank’s bankruptcy. SVB.
He added that “anyone who keeps uninsured funds on deposit with an insolvent bank is not a bright person”, essentially urging users to withdraw their money from the insolvent bank.
Nothing in SVB’s KYC policies or who they extended credit to seems to have anything to do with how they became insolvent. And anyone keeping uninsured funds on deposit with an insolvent bank is not a bright person.
—David “JoelKatz” Schwartz (@JoelKatz) March 20, 2023
As reported by U.Today earlier, the head of the fintech company Ripple, Brad Garlinghouse, made 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 cashing in.
Still, SVB’s bankruptcy will not disrupt Ripple’s day-to-day operations and no damage has been caused, according to the CEO.
A Bitcoin Investor Predicted the Collapse of Signature Bank
After SVB and Silvergate, another crypto-friendly institution, Signature Bank, went bankrupt. Before this news was announced, a prominent investor and financial expert, Robert Kiyosaki, widely known for his book “Rich Dad, Poor Dad”, tweeted that he expects a third bank to fail after Silvergate and SVB. Since he is a bitcoin advocate, before that he posted a recommendation for his followers to acquire more bitcoin, physical gold and silver coins.
Kiyosaki has been tweeting about an upcoming financial crisis since early 2020 when the pandemic began, and also tweeting about “fake USD” the US government has printed to prop up the economy and bail out big businesses and banks. By the way, SVB and Signature Bank are also going to be bailed out.
When the two former banks became insolvent, the price of Bitcoin shot up to the $28,000 level as investors switched to digital currency amid instability in the banking industry.