The Federal Deposit Insurance Corporation (FDIC), responsible for the collapsed Signature Bank’s digital asset business, has given April 5 to the bank’s crypto clients as the deadline to close their accounts and move their funds.
The clients who have crypto deposits in the bank must find another alternative for their funds before the set deadline.
- The accounts not closed by April 5 will be automatically shut down, and the depositors will receive a check to their registered address in the mail.
- Signature’s non-crypto-related deposits and loans were sold to Flagstar Bank, a subsidiary of New York Community Bancorp., on March 19.
- The sale deal does not include nearly $4B of crypto-related deposits of Signature, and the FDIC said it would transfer the deposits held by the bank’s digital asset business directly to customers with a digital banking account.
- Signature’s real-time crypto payment platform, Signet, was also excluded from the deal, and its fate is still uncertain.
- An FDIC spokesperson said the agency continues to reach out to Signature clients whose deposits were not included in the sale deal.
- Crypto-friendly Signature Bank was shut down by the New York Department of Financial Services (NYDFS) on March 12, marking the third bank collapse within a week in the U.S. after Silvergate Bank and Silicon Valley Bank (SVB).
- The bank had many well-known crypto clients, including Paxos, Coinbase, Circle, and Celsius.
