Signature Bank cryptocurrency clients have been told until April 5 to withdraw their funds and find another bank, or their accounts will be closed by federal regulators.
According to reports, the spokesperson of the Federal Deposit Insurance Corporation (FDIC) of the United States said on March 28 that this agency “reached out to the depositors of Signature whose deposits were not included in the NYCB bid, confirming that these deposits belong to clients of digital assets.
Depositors who close their accounts will receive checks to their registered address, so anyone who has funds held with Signature but is unable to transfer should at least make sure their registered address is up to date.
Cointelegraph has reached out to the FDIC for confirmation but has not heard back at the time of publication.
While New York Community Bancorp (NYCB) bought most of the deposits and loans held by Signature Bank on March 19, the deal with the FDIC did not include “about $4 billion in deposits related to Signature Bank’s former digital banking business.”
related: Crypto-friendly banks are mismanaging traditional risks, FDIC chief tells Senate hearing
Also excluded from the agreement is the Signature Signet payment platform, which is powered by blockchain technology to facilitate real-time payments without transaction fees or limits. Signet’s fate is still uncertain.
New York-based Signature was shut down by New York regulators on March 12, citing concerns that it was experiencing a bank run and posed a “systemic risk” to the US economy.
Gruenberg: Signature Bank lost 20% of its deposits in a few hours on March 10, the day SVB closed.
Mark has a negative balance at the Fed when it closes for business, and “bank management cannot provide accurate data on the amount of the deficit.” pic.twitter.com/679dNnnrzJ
– Nick Timiraos (@NickTimiraos) March 27, 2023
The FDIC is appointed as the bank’s receiver, which means it is tasked with managing the funds and related property.
Banks interested in acquiring Signature’s assets were asked to submit bids to the FDIC by March 17, with the agency only considering bids from existing bank charter holders.