Cryptocurrency-friendly Signature Bank was reportedly under investigation by two United States government agencies before it collapsed.
According to a March 15 Bloomberg report citing people familiar with the matter, investigatorsat the Department of Justice are looking into whether Signature took adequate steps to detect possible money laundering by its clients.
It noted that the regulator is concerned that the bank is taking preemptive steps to monitor transactions for “signs of criminality” and properly vet account holders.
A separate investigation by the Securities and Exchange Commission (SEC) is also “looking into” the bank, according to two anonymous sources. Details about the nature of the SEC investigation were not disclosed.
It’s unclear when the investigation began and what impact, if any, it had on New York state regulators’ decision to close the bank.
It is reported that Mark and his staff have not been charged with wrongdoing and that the investigation was resolved without further charges or action being taken by the SEC or the Department of Justice.
This is a developing story, and further information will be added as it becomes available.