FDIC will forcibly close crypto deposits of Signature Bank customers after April 5

Deposits in digital assets were estimated at $4 billion at the time of the company’s sale on March 23

29.03.2023 - 09:40

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2 min

What’s new? The US Federal Deposit Insurance Corporation (FDIC) has urged customers of the bankrupt Signature Bank to withdraw funds and close their accounts by April 5. Otherwise, the accounts would be forcibly closed after that date. The bank itself was closed by order of the New York State Department of Financial Services (NYDFS) on March 12, and on March 23 the FDIC sold it to Flagstar Bank, excluding the cryptocurrency part of the business. At that time, deposits in digital assets were estimated at $4 billion.

Bloomberg’s material

What else is known about the situation? Signature’s instant payment network called Signet, which is also used by cryptocurrency customers, remained under the FDIC after its purchase by Flagstar Bank. The regulator has not yet commented on its plans for Signet.

Earlier, Reuters reported that a mandatory condition of the FDIC when buying a Signature is the refusal of a potential buyer from the bank’s activities related to digital assets. However, the corporation itself denied this information.

And lawyers at Cooper & Kirk called on Congress to investigate the deal, suspecting regulators of deliberately suppressing cryptocurrency innovation in the private sector. Earlier, Congressman Tom Emmer also demanded clarification from the FDIC over the suspected attempt to suppress legal crypto activity in the country.

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