Following the collapse of Silicon Valley Bank, executives from Circle and BlockFi were questioned by lawmakers investigating allegations of “mutual backscratching arrangements” with the bank. On April 9, Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortez wrote to Circle, BlockFi, and 12 other non-crypto tech firms, requesting information on their relationships with SVB. The lawmakers questioned executives on the length of their financial relationships with SVB, amounts deposited, and any agreements made.
They also asked whether SVB offered perks such as low-interest rate mortgages or sponsored events. Warren and AOC believe these factors may explain why some customers placed extremely large amounts of uninsured deposits at SVB.
