FDIC denies report Signature buyers must give up crypto

Reuters previously reported buyers of Signature Bank “must agree to give up all the crypto business at the bank.”, which FDIC has now denied to Reuters via email.

As per Reuters Wednesday report, citing sources familiar with the matter, there has been development at the bank, which was newly closed by the regulators.

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The Department of Justice and the U.S. Securities and Exchange Commission are investigating Signature for possible money laundering facilitated by inadequate monitoring. A quarter of the bank’s deposits came from its crypto clients.

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The Federal Deposit Insurance Corp., which took charge of Signature Bank, has stated that bids for the bank must be submitted by Friday.

Related: Signature Bank buyers to give up crypto

FDIC spokesperson told via email:

Thee receivership does not end until all the bank’s assets are sold and all the claims against the bank are addressed, and the acquirer decides the conditions of their bid.

The spokesperson added, that it’s in the hands of the Signature acquirer to decide “what assets and liabilities from the failed bank it is willing to take.” In addition, the spokesperson referred to two joint statements by the FDIC, Office of the Comptroller of the Currency, and the Federal Reserve. One of the statements clarifies that banks are not discouraged or prohibited from offering services to any industry sector.

The FDIC’s response highlights the alarmed state of the crypto community, not only after the three closed crypto-friendly banks in one week, but also the statement from board member Barney Frank, who told CNBC that the banking regulator closed the bank to send “a very strong anti-crypto message.”