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Identity Digital hit by failure of Silicon Valley Bank

Kevin Murphy, March 14, 2023, Domain Registries

Identity Digital, which runs hundreds of gTLDs, has warned its network of registrars not to send payments to its Silicon Valley Bank account.

SVB, America’s 16th-largest bank, was shut down on Friday by US financial regulators after a run on deposits. The failure has been described as the largest since the 2008 financial crisis.

Identity Digital told registrars yesterday that it was an SVB customer, but said “our exposure is very limited and we remain committed to serving our customers, employees, and vendors without interruption.”

Nevertheless, it asked partners to direct payments instead to its HSBC bank account.

SVB also provided ID, then Donuts, with a $110 million credit facility in 2017, which it used to fund its $213 million acquisition of Rightside.

The failure of SVB was so worrying that US President Joe Biden yesterday morning took to the airwaves to reassure customers that their deposits were safe and the banking system stable.