Signature Bank, one of the two significant banks for the crypto industry, has also been shut down by the New York regulators -- the third US bank failure within a week.
US Treasury Secretary Janet Yellen, Federal Reserve Board Chair Jerome Powell and Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg said in a joint statement that all depositors of Signature Bank "will be made whole".
Signature Bank had $88.59 billion in deposits as of December 31, 2022 and the New York Department of Financial Services has taken possession of the bank, reports The Verge.
Leading crypto exchange Coinbase had $240 million in cash at Signature Bank.
"As of close of business Friday March 10, Coinbase had an approximately $240m balance in corporate cash at Signature. As stated by the FDIC, we expect to fully recover these funds," the crypto exchange said in a tweet.
Circle, the firm behind USDC stablecoin, is also affected by the Signature Bank closing.
Its CEO Jeremy Allaire said in a tweet that with the closure of Signature Bank, "we will not be able to process minting and redemption through SigNet, we will be relying on settlements through BNY Mellon".
"Additionally, we will be bringing on a new transaction banking partner with automated minting and redemption potentially as soon as tomorrow. We are committed to building robust and automated USDC settlement and reserve operations," he added.
Crypto firm Circle also have $3.3 billion stuck at Silicon Valley Bank (SVB), the non-crypto bank that collapsed last week, triggering panic in the tech industry.
Bankrupt crypto lender BlockFi also has $227 million in funds stuck at SVB.
Top cryptocurrency exchanges Binance and Coinbase have also temporarily suspended USDC stablecoin conversions after the collapse of SVB.
Another US traditional bank Silvergate Capital last week announced it was "wind down operations and voluntarily liquidating" its bank division.
The fall of cryptocurrency exchange FTX and an overall meltdown in the global crypto market is the reason behind the collapse of Silvergate Capital -- a lender of choice to startups and tech firms.
The Federal Reserve Board has now announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.
The regulators have said that depositors of SVB will have access to their uninsured deposits on Monday (US time) and no losses would be paid for by taxes.
Indian army responding to Pak ceasefire violations: FS Vikram Misri
Foreign Secretary Vikram Misri on Saturday said that Indian armed forces have been responding adequately to the ceasefire violations by the Pakistani army despite the announcement of truce between the two countries a few hours earlier.
Hours after announcement of truce, Pakistan violates ceasefire
Despite the announcement of ceasefire by India and Pakistan, there was a violation by the Pakistan army on Saturday evening in Akhnoor, Mendhar, R.S. Pura, Chamb, Bhimber and Gurez sectors while loud blasts were also heard in Srinagar.
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The Indian armed forces respect the Constitution’s secular values and keeping these in mind, they did not target any mosque during ‘Operation Sindoor’, the Defence Ministry said on Saturday, within hours of agreeing to a ceasefire with Pakistan.
India and Pakistan to stop all firing and military action: MEA
A few minutes after US President Donald Trump announced a "full and immediate ceasefire" between India and Pakistan, the Ministry of External Affairs (MEA) said that both sides would stop all firing and military action on land, air and sea with effect from 5 PM Indian Standard Time, on Saturday.
India to treat terror strike in future as 'Act of War'
India has decided that any future act of terror will be considered an ‘Act of War’ against the country and will be responded to accordingly, a decision which aligns with the Narendra Modi government’s zero tolerance for terror, official sources said on Saturday.
6 Pakistani air bases pounded by India in hit-back
Besides blunting Pakistan’s drone attacks overnight, India has carried out precision attacks on six Pakistan Air Force bases in Rafiqui, Sukkur, Murid, Chunia, Chaklala, and Rahim Yar Khan, said an official on Saturday.
India hit 8 military bases in Pakistan, including Sialkot station: Centre
India responded strongly to Pakistan’s repeated drone and missile attacks and hit at least eight military targets inside Pakistan on Friday night with precision, thereby causing significant damage, the Centre told the Press, as part of a special briefing on 'Operation Sindoor'.
Pak troops moving into forward areas, Indian forces in high state of operational readiness: Govt
India on Saturday said that Pakistan was escalating tensions along the Western border by moving troops into forward areas, suggesting an offensive intent to intensify hostilities.