Crypto lender BlockFi has $227 million in uninsured funds stuck in an account with now-defunct Silicon Valley Bank. The funds are parked in a money market mutual fund that is not insured by the Federal Deposit Insurance Corporation, according to a filing by the US Justice Department. The document cited Silicon Valley Bank papers that show the BlockFi account is not regarded as a deposit, is uninsured by the FDIC and could be at risk of losing value. The DOJ also said BlockFi ignored warnings about the account. Meanwhile, insured depositors will gain access to their funds by the morning of 24 October.
