Breaking news: Signature Orders Clients To Shut Down Crypto Accounts!

Key Points:

  • Signature Bank’s crypto clients must close accounts by April 5 or have them closed by the FDIC.
  • $4 billion of deposits related to Signature Bank’s digital banking business are not included in the NYCB’s bid.
  • Signature’s payments platform Signet, powered by blockchain, may also be affected.
Signature Bank, a New York-based bank, has reportedly given its clients with cryptocurrency funds until April 5 to withdraw their funds and find another bank.
Signature Orders Clients To Shut Down Crypto Accounts

Otherwise, their accounts will be closed by the United States Federal Deposit Insurance Corporation (FDIC). The FDIC confirmed on March 28 that the deposits belonging to digital asset clients were not included in New York Community Bancorp’s (NYCB) bid to buy most of the deposits and loans held by Signature Bank on March 19.

Depositors who have their accounts closed will receive a check to their registered address. This means anyone with funds held with Signature but unable to transfer them out should ensure that their registered address is up-to-date. It is important to note that while New York Community Bancorp (NYCB) bought most of the deposits and loans held by SB on March 19, the deal with the FDIC did not include “approximately $4 billion of deposits related to the former Signature Bank’s digital banking business.”

Also excluded from the deal was Signature’s payments platform Signet, which is powered by blockchain technology to facilitate real-time payments with no transaction fees or limits. The fate of Signet is still currently uncertain.

Signature Bank was closed by New York regulators on March 12 due to concerns about a bank run and its potential risk to the U.S. economy. The FDIC was appointed as the receiver of the bank, and it was tasked with administering the funds and property connected to it. Banks interested in acquiring the assets of SB were asked to submit bids to the FDIC by March 17, with the agency reportedly only considering bids from those with an existing bank charter.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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