After the announcement of the bankruptcy of Silicon Valley Bank (SVB) on March 10 and the absolute control of its administration by the California bank supervisory body, the alarms have not stopped going off. Some for fear of other financial entities to be in a similar situation, because it is the second largest US bank failure since 1970and others because hackers used this situation to attack.
In the prestigious list of ‘Forbes’ magazine on February 14, the 50 best banks in the US were published, with Silicon Valley Bank occupying the rank number 20. It must be taken into account that there are 4,213 banks in the country, which gave it a preferential position.
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But the problems worsened for the financial entity, and taking advantage of the fears of insecurity that the crisis has aroused in one of the largest US lenders, hackers have begun to attack cryptocurrency-related phishing attacksspecifically with the USD Coin (USDC)a price-stable digital currency pegged to the USD.
The keys to cyberattack
Following this, proof point has determined, through a rigorous study, that the bankruptcy of SVB goes hand in hand with a unprecedented phishing attack. Scammers have sent messages posing as brands in the crypto world to claim their coins or exchange them for US dollars. These actions began after Circlethe company behind the USDC cryptocurrency, announced that it had cash reserves in SVB.
Now the hackers started using a lure that promised the victim to exchange their USDC for dollars. at a ratio of 1:1 and then induce the victim to install a Smart Contract to transfer the contents of your wallet to the attacker.
Undoubtedly, cybercriminals have taken advantage of the emotions and fear that exists among users to exploit vulnerabilities. For this reason, Proofpoint urges those who handle information or financial transactions to be cautious in the face of any suspicious messages they receive.
The keys to bankruptcy
After the great financial crisis of 2008, that of Silicon Valley Bank may end up affecting thousands of citizens and companies. In fact, the Federal Reserve, the Treasury Department and the US regulatory body have announced that they will intervene so that the bank can guarantee the payment of all your deposits and that the problem spread to the entire financial fabric.
For now, the ‘domino effect’ has ended up hurting other banks such as SignatureBank of New York and the Silvergate Bank, two companies characterized by granting loans to cryptocurrency companies. To this we must add that the bankruptcy of the SVB has caused the bank of england has sold the UK subsidiary to HSBC bank in exchange for a pound sterling.
The problem of the SVB comes from the fact that the entity has always been characterized by financing emerging companies in the technological field, it was a start-up bank. The loan-to-deposit ratio was very low and all the excess was invested in Treasury bonds and government debt at a time when interest rates were very low and the value of the bond was very high.
However, the rise in interest rates, the fear of a recession and the slowdown in the market have made it difficult for the financial institution to operate. announced the sale of 21,000 million dollars in securities, with a loss of 1,800 million and a plan to raise 2,250 million in capital. His idea was sell 1.250 million dollars in ordinary shares and others 500 million in preferred shares, in turn sealing an agreement with the fund General Atlantic and sell another $500 million in common stock. By withdrawing their funds, start-up owners its shares fell on the stock market by 60%.
On March 10, the Federal Deposit Guarantee Corporation (FDIC) took control of all SVB deposits, covering them up to $250,000, as required by law. The problem is that the funds in the SVB are larger, since they belong to large technological start-ups and 95% of these were uninsured.
The FDIC will pay uninsured depositors an early dividend with a certificate of judicial administration that collects the remaining amount, resorting to a systematic risk exception.
After the announcement of the bankruptcy of Silicon Valley Bank (SVB) on March 10 and the absolute control of its administration by the California bank supervisory body, the alarms have not stopped going off. Some for fear of other financial entities to be in a similar situation, because it is the second largest US bank failure since 1970and others because hackers used this situation to attack.
In the prestigious list of ‘Forbes’ magazine on February 14, the 50 best banks in the US were published, with Silicon Valley Bank occupying the rank number 20. It must be taken into account that there are 4,213 banks in the country, which gave it a preferential position.
MS Recommends
But the problems worsened for the financial entity, and taking advantage of the fears of insecurity that the crisis has aroused in one of the largest US lenders, hackers have begun to attack cryptocurrency-related phishing attacksspecifically with the USD Coin (USDC)a price-stable digital currency pegged to the USD.
The keys to cyberattack
Following this, proof point has determined, through a rigorous study, that the bankruptcy of SVB goes hand in hand with a unprecedented phishing attack. Scammers have sent messages posing as brands in the crypto world to claim their coins or exchange them for US dollars. These actions began after Circlethe company behind the USDC cryptocurrency, announced that it had cash reserves in SVB.
Now the hackers started using a lure that promised the victim to exchange their USDC for dollars. at a ratio of 1:1 and then induce the victim to install a Smart Contract to transfer the contents of your wallet to the attacker.
Undoubtedly, cybercriminals have taken advantage of the emotions and fear that exists among users to exploit vulnerabilities. For this reason, Proofpoint urges those who handle information or financial transactions to be cautious in the face of any suspicious messages they receive.
The keys to bankruptcy
After the great financial crisis of 2008, that of Silicon Valley Bank may end up affecting thousands of citizens and companies. In fact, the Federal Reserve, the Treasury Department and the US regulatory body have announced that they will intervene so that the bank can guarantee the payment of all your deposits and that the problem spread to the entire financial fabric.
For now, the ‘domino effect’ has ended up hurting other banks such as SignatureBank of New York and the Silvergate Bank, two companies characterized by granting loans to cryptocurrency companies. To this we must add that the bankruptcy of the SVB has caused the bank of england has sold the UK subsidiary to HSBC bank in exchange for a pound sterling.
The problem of the SVB comes from the fact that the entity has always been characterized by financing emerging companies in the technological field, it was a start-up bank. The loan-to-deposit ratio was very low and all the excess was invested in Treasury bonds and government debt at a time when interest rates were very low and the value of the bond was very high.
However, the rise in interest rates, the fear of a recession and the slowdown in the market have made it difficult for the financial institution to operate. announced the sale of 21,000 million dollars in securities, with a loss of 1,800 million and a plan to raise 2,250 million in capital. His idea was sell 1.250 million dollars in ordinary shares and others 500 million in preferred shares, in turn sealing an agreement with the fund General Atlantic and sell another $500 million in common stock. By withdrawing their funds, start-up owners its shares fell on the stock market by 60%.
On March 10, the Federal Deposit Guarantee Corporation (FDIC) took control of all SVB deposits, covering them up to $250,000, as required by law. The problem is that the funds in the SVB are larger, since they belong to large technological start-ups and 95% of these were uninsured.
The FDIC will pay uninsured depositors an early dividend with a certificate of judicial administration that collects the remaining amount, resorting to a systematic risk exception.