The closure of Silicon Valley Bank (SVB) has caused a series of shocks comparable to those that occurred during the global financial crisis in 2008.

In 2020, most companies around the world faced difficulties, but the technology sector experienced tremendous growth. People spending more time at home increased their use of smartphone and computer screens, video conferencing software became popular, and new investments and active hiring meant that technology companies were growing faster than any other sector of the economy.

Silicon Valley Bank (SVB) is one of the leading banks in the technology sector with a total customer deposit value of $60 billion in the first quarter of 2020, which grew to $200 billion by the first quarter of 2022. But this favorable position was short-lived.

SVB invested in treasury bonds and mortgage-backed securities, and after the Federal Reserve raised interest rates to combat inflation, the bank suffered significant losses. To minimize losses, the bank began selling assets, but when it announced the need to raise $2.25 billion in capital, customers withdrew their deposits worth $42 billion. The next day, regulatory authorities closed the bank due to a lack of liquidity, and this became the largest bank failure in the United States since the global financial crisis of 2008.

Sunday brought good news for Silicon Valley Bank (SVB) depositors. The US government announced that they would be able to access their money starting on Monday, which alleviated concerns about a more serious crisis. The US Treasury, Federal Reserve, and Federal Deposit Insurance Corporation stated that taxpayers would not suffer losses from the liquidation of SVB.

Meanwhile, a consortium of investors led by London Bank has made an official proposal to buy the British unit of Silicon Valley Bank from the UK Treasury. The government is already working on a plan to support British technology companies affected by the bank's collapse.

Although SVB was not as closely tied to the crypto industry as Silvergate, its bankruptcy has already caused shockwaves in the industry.