Firm News

Kleinberg Kaplan’s Dov Kleiner spoke with CoinDesk on SVB’s ongoing Bankruptcy

Firm News | March 27, 2023 | Creditors’ Rights and Bankruptcy Litigation | Digital Assets and Cryptocurrency

Kleinberg Kaplan partner Dov Kleiner recently spoke with CoinDesk on their live TV series, “First Mover” and was quoted in the corresponding article, “SVB Financial’s First Bankruptcy Hearing ‘Wasn’t Really So Routine,’ Says Legal Expert.” In his interview, Dov discussed the latest following the first bankruptcy hearing with SVB Financial (parent company of Silicon Valley Bank) and whether SVB Financial or the FDIC should control the $2.1 billion in funds that have been frozen after SVB Financial’s initial bankruptcy filing on March 17.

Dov opines that SVB Financial likely wants control of the assets and have more than $3.4 billion of creditor claims against them. He further adds that, “If that money belongs to the holding company … then it belongs to all of the creditors of the holding company.”

While the FDIC has control over the funds currently, Dov points out that, “It will be a fight over which law applies, and then it will probably be a fight over what the actual claims [of SVB against SVB Financial] are.”

To watch the CoinDesk “First Mover” segment or read the corresponding article, please click here.