In total, investors and depositors initiated withdrawals equating to about $42 billion in deposits from the bank on Thursday alone, causing a run on the bank, according to a regulatory filing.
Flanzraich said Ness was eventually able to get full access to the funds. On Monday, he wired the majority of funds to Ness' sponsor bank, the Bank of Missouri. The company already opened an account with JPMorgan Chase and plans to open up a few more accounts with a few other big banks too, according to Flanzraich.
However, the collapse brought on quite a bit of instant anxiety for Flanzraich, who has been working hard to bring first premium health & wellness-first credit card to market with his team. Ness founder and CEO Derek Flanzraich. Ness is a fintech company working on the first premium health and wellness-first credit card.
"I'm the kind of CEO who enjoys the hard stuff as much as the good stuff. It's amazing to see the team come together and to tackle tough problems. It is … a lot less exciting when there's an existential threat that goes beyond something that's kind of in our control," he said, adding that "in this case, the slight possibility that the entire industry would be vaporized overnight was not a fun one to think about.
That said, the possibility that this "mission driven business that we've been working hard at building wouldn't be able to ultimately see through its ultimate vision" was "really nerve wracking," he said.
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