First Republic is the third midsize bank to fail in two months. It is the second-biggest bank failure in American history, behind only Washington Mutual, which collapsed at the height of the 2008 financial crisis.
The bank serves a similar clientele as Silicon Valley Bank, which failed Friday after depositors withdrew about $40 billion.
The nation’s 16th-largest bank failed after its depositors hurried to withdraw money this week amid anxiety over the bank’s health. It is the second biggest bank failure in American history.
The civil complaint says Sam Bankman-Fried diverted customer funds to Alameda Research LLC, his privately-held crypto fund, without telling them.