Crypto Clients Scramble as Signature Bank Deadline Looms

1. Signature crypto clients’ accounts closing
2. NYCB bid excludes $4B digital banking deposits
3. Signet platform’s fate uncertain

Signature Bank’s cryptocurrency clients face a ticking clock as they have been given until April 5 to withdraw their funds and find a new banking partner or risk having their accounts closed by federal regulators. This development comes after the recent acquisition of Signature Bank by New York Community Bancorp (NYCB).

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On March 28, a spokesperson for the United States Federal Deposit Insurance Corporation (FDIC) confirmed that the agency was contacting Signature depositors whose funds were not part of NYCB’s acquisition. These deposits, amounting to around $4 billion, belonged to clients involved in the bank’s digital asset business.

Customers who fail to transfer their funds by the deadline will receive a check sent to their registered address. Thus, it is crucial for clients to ensure their contact information is up-to-date. The acquisition deal between NYCB and FDIC did not include Signature Bank’s digital banking business or its blockchain-powered payments platform, Signet, which facilitated real-time transactions without fees or limits. The future of the Signet platform remains uncertain at this time.

New York-based Signature Bank was closed by state regulators on March 12 due to concerns of a bank run and potential systemic risks to the U.S. economy.

In other news, the CEO of Binance, Changpeng “CZ” Zhao, has refuted the Commodity Futures Trading Commission’s (CFTC) allegations, insisting that the cryptocurrency exchange never trades for profit or manipulates the market.

Read also:

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• Singaporean Banking Giant Launches Crypto Trust Solution