The assets of now-defunct Silicon Valley Bank are up for grabs, specifically its roughly $73 billion loan book, around 20% of which is venture debt.

If there was no buyer then the loans are auctioned.
The funds from the auction or sale would go to pay depositors.

The FDIC could find a buyer through a bidding process for both the assets and liabilities. JP Morgan is the most likely bank to try to buy all of SVB.