Signature Bank was forced to exit the cryptocurrency market
Signature Bank was forced to exit the cryptocurrency market
Signature Bank was shut down by US government regulators on Sunday and is now for sale, with the condition that any potential buyer agree to completely stop cryptocurrency activities.
Signature Bank, which holds a quarter of all cryptocurrency deposits, is now being investigated by the Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) for "potentially weak monitoring."
According to Reuters, the FDIC has imposed a significant condition on banks that decide to acquire the bankrupt SVB and Signature Bank. They have until Friday, March 17th, to apply.
Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank are all well-known crypto-friendly banks.
Signature Bank was sued in a class-action lawsuit in February, alleging that the bank was aware of "the FTX scam" and "even facilitated it." Signature Bank, in particular, was accused of "mixing FTX customer funds in its own payment network based on the Signet blockchain."
Cryptocurrency analysts believe that the closure of three cryptocurrency banks represents a coordinated effort by regulators to reduce the crypto industry's share of the banking system.
"I am confident that what happened was the result of a targeted anti-crypto move by regulators," said Barney Frank, a Signature Bank board member.
At the same time, the New York City Department of Financial Services (DFS) denies that the bank's closure is related to cryptocurrency assets.
Signature Bank acquisition applications must be submitted by Friday, March 17th.
