Report: Signature Crypto Clients To Close By April 5
Any cryptocurrency deposits that aren’t moved to another bank by April 5 will be sold and the client will get a check.
Customers of Signature Bank who use cryptocurrencies have reportedly been given until April 5 to take their money out and find another bank, or the federal regulator will close their accounts.
On March 28, a spokesperson for the United States Federal Deposit Insurance Corporation said that the agency was reaching out to Signature depositors whose deposits were not included in NYCB’s bid to confirm that these deposits belonged to digital asset clients.
People who close their accounts will get a check sent to their registered address. This means that if you have funds held with Signature but can’t transfer them out, you should at least make sure your registered address is correct.
Signature Bank sold most of its deposits and loans to New York Community Bancorp (NYCB) on March 19. However, approximately $4 billion of deposits related to the former Signature Bank’s digital banking business were not part of the deal with the FDIC.
Signature’s blockchain-powered payments platform Signet was also excluded. Still, no one knows what will happen to Signet.
New York regulators shut down Signature on March 12 because they were worried that it was having a bank run and posed a “systemic risk” to the U.S. economy. Signature was based in New York.
Gruenberg: Signature Bank lost 20% of its deposits in a matter of hours on March 10, the day SVB was shut.
Signature had a negative balance at the Fed at the close of business, and “bank management could not provide accurate data regarding the amount of the deficit.” pic.twitter.com/679dNnnrzJ
The FDIC was named as the bank’s receiver, which means it was given the job of managing the bank’s money and property.
The FDIC asked banks that wanted to buy Signature’s assets to send bids by March 17. The agency reportedly only looked at bids from banks that already had a bank charter.
