Reportedly, Signature Bank’s cryptocurrency clients have until April 5 to withdraw their funds and find another bank, or their accounts will be closed by the federal regulator.
According to Bloomberg, A spokesman for the United States Federal Deposit Insurance Corporation said on March 28 that the agency was contacting Signature depositors whose deposits were not included in the NYCB offer, confirming that these deposits belonged to clients of digital assets.
Depositors whose accounts are closed will receive a check to their registered address, so anyone who has funds in Signature but can’t transfer them should at least make sure their registered address is up to date.
Cointelegraph has contacted the FDIC for confirmation on the matter, but has not heard back at press time.
Although New York Community Bancorp (NYCB) purchased most of the deposits and loans held by Signature Bank on March 19, the settlement with the FDIC did not include “approximately $4 billion of deposits related to Signature’s former digital banking business.” Signature Bank.”
Also excluded from the deal was Signature’s Signet payments platform, which is powered by blockchain technology to facilitate real-time payments without fees or transaction limits. Signet’s fate remains uncertain.
New York-based Signature was shut down by New York regulators on March 12 amid concerns it was experiencing a bank run and posed “systemic risk” to the US economy.
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
—Nick Timiraos (@NickTimiraos) March 27, 2023
Gruenberg: Signature Bank lost 20% of its deposits in a matter of hours on March 10, the day SVB was shut down. Signature had a negative balance with the Fed at the end of the day and “management of the bank could not provide precise data on the amount of the deficit”
The FDIC was named receiver of the bank, meaning it was tasked with managing the funds and assets associated with the bank.
Banks interested in acquiring Signature’s assets were asked to submit offers to the FDIC by March 17.and the agency will reportedly only consider offers from those who already have a bank charter.
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