Silicon Valley Bank's (SVB) parent company, SVB Financial Group, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. The filing will carry the former umbrella company to a court-supervised process. More: - SVB Financial Group said the decision was made to preserve the value.
- California-based SVB was shut down by the state's Department of Financial Protection and Innovation on March 10.
- The Federal Deposit Insurance Corporation (FDIC) currently holds the receivership of the bank.
- According to SVB Financial, it has approximately $2.2B in liquidity, $3.3B in debt outstanding, and $3.7B of preferred equity.
- SVB Financial's other businesses, such as the investment manager SVB Capital and the brokerage firm SVB securities, will be excluded from the bankruptcy process and continue to operate while the company is exploring strategic alternatives.
- The sale of SVB assets led by the FDIC will also be held separate from the bankruptcy process to repay depositors.
Zoom Out: - March saw the consecutive collapses of three crypto-friendly banks, Silvergate Bank, SVB, and Signature Bank, within just a week.
- SVB, previously the 16th largest bank in the U.S., provided banking services to several crypto and tech startups.
- The 40-year-old bank's collapse marked the second-largest bank failure in U.S. history, trailing only Washington Mutual in 2008.
| |
YouTubers who promoted the bankrupt crypto exchange FTX were named in a $1B class-action lawsuit led by Edwin Garrison. The plaintiffs claimed that the respondents promoted the FTX crypto fraud without revealing the nature and scope of their sponsorships, endorsement deals, or payments. More: - The Southern District of Florida, Miami Division, received the lawsuit on March 15.
- The respondents include Kevin Paffrath, Graham Stephan, Andrei Jikh, Jaspreet Singh, Brian Jung, Jeremy Lefebvre, Tom Nash, Ben Armstrong, Erika Kullberg, and Creators Agency LLC.
- Moskowitz Law Firm, representing the plaintiffs, says the suit consolidates several class-action cases.
- Some plaintiffs in the class action lawsuit are from different countries, and all bought unregistered securities from FTX.
- The suit claims that the defendants promoted this unregistered security for their own or FTX's financial benefits.
- The plaintiffs asserted that their damages account for a sum exceeding $1B.
Zoom Out: - Kim Kardashian had to pay a $1.26M fine to settle with the U.S. Securities and Exchange Commission (SEC) last year since she promoted Ethereum Max's EMAX token without properly disclosing that she was paid $250,000 for the promotion.
- In February, former NBA star Paul Pierce was fined $1.4M by the SEC for the same offense as Kardashian.
| |
 A message from CONSTRUCTOR Future-proof your ecommerce shopping experiences using AI-first search and product discovery Digital transformation is no longer optional. It is critical for ecommerce retailers. With inflation rising and a recession looming, success in 2023 demands that you protect revenue centers while staying agile enough to keep pace with global trends and evolving consumer needs. Learn how AI is the competitive edge that retailers and brands are turning to for: - reducing manual merchandising activities
- hyper-personalizing online shopping experiences
- linking real-time physical and digital product discovery
Download The 2023 Ecommerce Playbook to learn the top four steps ecommerce retailers should take to keep up with consumers and offer engaging, attractive shopping experiences that convert. Download now
| |
Silicon Valley Bank's (SVB) collapse has negatively impacted NFT trading volumes, according to a recent report from Web3 data platform DappRadar. The volumes declined to $36M on March 12, down from between $68M and $74M on March 10, the day that brought the U.S.' 16th largest bank to closure. More: - Daily NFT sales also fell by 27.9% from March 9 to 11.
- Only 11,440 active NFT traders left on March 11, the lowest number since November last year.
- On the same day, single NFT trades also regressed to 33,112, the lowest figure so far in 2023.
- The report also pointed out that NFT trading volumes and NFT sales have declined 51% and 16% since the beginning of March, respectively.
- The floor prices of the projects from Yuga Labs, the firm behind the famous Bored Ape Yacht Club (BAYC) and CryptoPunks NFTs, quickly recovered, though they fell slightly on March 11.
- Yuga Labs co-founder Greg Solano said the company had very limited exposure to SVB.
- On the other hand, the floor prices of Moonbirds NFTs fell by 35.3% from 6.18 ETH to 4 ETH on the NFT marketplace OpenSea.
- Moonbirds decreased 18% in value after the firm behind the collection, Proof, tweeted that it had some funds invested in SVB.
Zoom Out: - Trading volume refers to the amount of cryptocurrencies exchanged during the sales, while the NFT sales account for the number of NFTs traded.
- NFT trading volumes surpassed $2.04B in February, reaching the highest levels since the Terra ecosystem's collapse in May 2022, which triggered the crypto winter.
| |
Bankrupt crypto lender Genesis has made a legal request for June 27 for an auction on the sale of its business. The firm also requested May 22 as a deadline for creditors to claim the amount Genesis owes them. More: - Genesis' legal request was disclosed through bankruptcy court filings dated March 16.
- Bidders seeking to buy Genesis will have until May 5 to show interest.
- The sale is expected to involve Genesis Global Capital, Genesis Asia Pacific, and Genesis Global Trading, though the latest has yet to file for bankruptcy.
- The company submitted the plan for approval to a bankruptcy court in the Southern District of New York.
- The request will be considered by Judge Sean Lane at a hearing on March 30.
Zoom Out: - Genesis filed for bankruptcy on Jan. 19 and unveiled the outline of its sale plan last month.
| |
 A message from FORTE GROUP ChatGPT, "when it comes to whether 'ilities' should be prioritized in software engineering, who is right, the CTO or the CEO?" To learn the answer firsthand, join Forte Group on March 30th, 2023, for a virtual panel discussion, "The balance between business expectations and CTOs' software sustainability needs." A panel on how CTOs balance and prioritize non-functional requirements into their roadmap. We have lined up seasoned professionals in the room who drive the evolution from agile, excellent cloud migration, and test-driven-development to become what we refer to as modern engineering. Our expert panel, composed of experienced CTOs and business leaders and our special guest ChatGPT, will share their thoughts on 7 "ilities" that continue to be the source of conversation within engineering circles: - Usability
- Maintainability
- Scalability
- Availability
- Extensibility
- Security
- Portability
Take the opportunity to learn from experts in the field and gain valuable insights into the latest engineering trends! Register Now
| |
The collapsed Silicon Valley Bank’s (SVB) former CEO, Greg Becker, was spotted in Hawaii while retreating to his $3.1M townhouse in Maui with his wife, Marilyn Bautista. The former executive sold 12,500 shares for around $3.5M only two weeks before the closure. More: - The couple rode in a limo to the San Francisco Airport and went to their townhouse in Hawaii by booking first-class tickets.
- Becker’s custom-built two-story property within a gated community in Hawaii features a tennis court, three surf breaks, three swimming pools, and a clubhouse.
- The stock sales of Becker and the former CFO Daniel Beck before the shutdown are currently under investigation by the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC).
- The two were also sued by shareholders claiming that they hid information about the bank becoming sensitive due to rising interest rates.
Zoom Out: - California-based SVB was shut down by the state’s Department of Financial Protection and Innovation on March 10, marking one of the three bank collapses within a week, alongside Silvergate Bank and Signature Bank.
- The bank was the 16th largest bank in the U.S. and provided banking services to several crypto and tech startups.
| |
Salesforce, the software giant offering many cloud-based services, has announced its partnership with Polygon Labs, the firm behind the Polygon blockchain. The collaboration will allow Salesforce clients to develop NFT-based loyalty programs on Polygon. More: - The partnership was announced by the president of Polygon Labs, Ryan Watt, on Twitter.
- Salesforce recently launched its new NFT-focused Web3 service.
- The software giant’s new service enables its corporate customers to mint, manage, and sell NFTs on a trusted blockchain network.
Zoom Out: - With the last move, Salesforce joined the major brands, including popular coffee chain Starbucks, Japan’s Square Enix, and South Korea’s Lotte Group, collaborating with Polygon in the last several months.
- The U.S.-based software giant has over 150,000 corporate customers using its customer relationship management (CRM) services.
| |
Quick Hits: - Develop a better understanding of partnership marketing. Discover various partnership types and how they've helped leading companies flourish in this guide.*
- The Federal Deposit Insurance Corporation (FDIC), currently holding the receivership of the collapsed Signature Bank, has rejected the claims that it would require the bank's purchaser to leave the crypto business.
- Decentralized exchange (DEX) Orca will ban users in the U.S. from trading coins through its web interface as of March 31.
- U.S. Congressman Tom Emmer accused the Biden administration of using the current crisis in the banking industry as a weapon against the crypto market.
- End the March Madness of manual expense reporting with Divvy. Demo with Divvy to get a College Basketball Jersey of your choice.*
*This is a sponsored post.
| |
Upcoming events at Inside: - March 20 - Inside Interview with Rollworks - Clearing the Path to ABM Success: Addressing the Issues Holding You Back (Watch On Demand)
- March 21 - Inside Startups Coffee Break (Register Here)
- March 27 - Inside Interview with Zscaler - Zero Trust Defense Strategies to Take Your Security to the Next Level (Watch On Demand)
- March 30 - A panel on how CTOs balance and prioritize NFRs into their roadmaps (Register Here) *
- March 30 - Inside.com Book Club - The Creative Act by Rick Rubin (Register Here)
- April 18 - Human Resources Summit'23 (Register Here)
*This is a sponsored listing.
| |
 |  | Doga is a tech and science editor who has been writing news for nearly 10 years. She worked for leading tech platforms and mainstrem media channels as an editor and presenter throughout his career. Then, she carried her know-how to more than one platform. She is a part-time cat lover and binge-watcher, and also fond of science, space, and emerging tech. She always has a story to tell. She is a bit addict to the laughter and -unfortunately- the '90s culture. |  | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
Read Constructor's 4 Essential Ecommerce Strategies to Increase Profit and Succeed in a Challenging Economy | |
| |
Comments
Post a Comment