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Signature Bank's Crypto Clients are Informed to Close Accounts by April 5

2023-03-30 Brokersview

The Federal Deposit Insurance Corporation (FDIC) on Tuesday sent a notice to crypto clients of the collapsed Signature Bank (now Signature Bridge Bank), saying they have until April 5 to transfer their assets and close their accounts with the bank.


An FDIC spokesman said: "Those are the deposits we are encouraging customers to move before April 5. If they have not by that day, we will mail checks to the address on record.


Signature Bank was once one of the main sources of financing for cryptoc companies.


A joint statement was issued on March 12 by the U.S. Treasury, Federal Reserve, and FDIC regarding the banking risks posed by the collapse of Silicon Valley Bank, and announced the closure of Signature Bank in New York State, citing systemic risks.


This month, Flagstar Bank, a subsidiary of New York Community Bancorp, Inc., acquired approximately $38.4 billion of Signature Bank's assets, including approximately $25 billion in deposits and approximately $12.9 billion in loans. However, Flagstar Bank has not acquired the $4 billion in assets associated with the digital banking business.


Regulator data shows that Signature Bank's total assets were about $110.36 billion at the end of 2022.