Crypto clients of Signature are asked to cancel their accounts by April 5
Customers of Signature Bank who have cryptocurrencies have apparently been given until April 5 to withdraw their money and find another bank, failing which the federal regulator will terminate their accounts.
Any crypto deposits not transferred to another bank by April 5 will be liquidated and a check mailed to the client’s address.
Anybody with funds kept with Signature but unable to move them out should at least make sure their registration address is up to date. Depositors who have their accounts closed will get a check to their registered address.
While the majority of the deposits and loans held by Signature Bank were acquired by New York Community Bancorp (NYCB) on March 19, the agreement with the FDIC excluded “about $4 billion in deposits related to the old Signature Bank’s digital banking division.”
The blockchain-based payments platform Signet from Signature, which enables real-time payments with no fees or restrictions, was also left out of the agreement. At now, it’s unclear what will happen to Signet. On March 12, New York regulators shut down the New York-based Signature out of worry that it was going through a bank run and presented a “systemic danger” to the American economy.
The FDIC was designated as the bank’s receiver, which meant that it was charged with managing the assets and property associated with it. The FDIC requested bids from banks interested in purchasing the assets of Signature by March 17; the agency apparently only took into account bids from those with an active bank charter.
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