In light of the developing problem, a number of shareholders allegedly filed a lawsuit against the parent business of Silicon Valley Bank and a few of its officials.
On March 13, a number of media sites reported that some Silicon Valley Bank shareholders had accused the company, its CEO Greg Becker, and its chief financial officer Daniel Beck of fraud.
After California regulators closed the bank on March 10, which led to USD Coin momentarily de-pegging from the dollar amid rumors Circle held more than $3 billion of the stablecoin’s holdings at the banking institution, the complaint is likely one of the first to be filed in court.
According to reports, the firm’s interest rates were allegedly hidden from the shareholders, making it “especially susceptible” to a bank run.
