2 months ago 1 min read

Signature Instructs Customers To Shut Their Cryptocurrency Accounts

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As per reports, New York-based bank Signature Bank has given its customers with cryptocurrency funds until April 5 to withdraw their money and switch banks.

Otherwise, the United States Federal Deposit Insurance Corporation will shut their accounts (FDIC). The FDIC acknowledged on March 28 that the deposits held by customers who own digital assets were not a part of New York Community Bancorp's (NYCB) March 19 offer to purchase the majority of the deposits and loans held by Signature Bank.

An account closure check will be sent to the registered address of the depositor. This means that anyone who has money in Signature but is unable to withdraw it should make sure that their registration address is current. The arrangement with the FDIC did not include "about $4 billion in deposits tied to the former Signature Bank's digital banking operation," despite the fact that New York Community Bancorp (NYCB) acquired the majority of the deposits and loans held by SB on March 19.

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.

A bank run and the potential harm to the U.S. economy led New York regulators to close Signature Bank on March 12. The FDIC was designated the bank's receiver and given the responsibility of managing the assets and property related to the bank. The FDIC requested bids from banks by March 17 if they were interested in purchasing SB's assets; the agency apparently only took into account bids from banks having an active bank charter.

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