Signature Bank customers will receive their crypto deposits directly

Cryptocurrency deposits from Signature Bank, which recently announced its closure, will be returned directly to customers rather than being transferred to the New York Community Bancorp division as part of the deal. It became known Bloomberg.

According to the agency, the federal deposit insurance corporation said that Flagstar Bank’s application did not include Signature digital assets. Therefore, deposits of approximately $4 billion will be returned to customers directly.

As part of the takeover agreement, Flagstar Bank will buy “substantially all deposits and certain loan portfolios” from the US bank after the New York State Department of Financial Services (FDIC) closed it earlier in March. As of Monday, March 20, 40 Signature branches are expected to operate under the Flagstar brand.

At the same time, the Signature Signet payment network used by cryptocurrency-related clients will be managed by the FDIC.

A week earlier, US regulators closed the Signature Bank, explaining their decision by the need to protect the US economy and strengthen American confidence in the stability of the national banking system. The Signature closure has now gone down in history as the third-biggest bank failure in U.S. history.

Reports later surfaced that US regulators had begun investigating the bank’s activities even before it closed. U.S. Department of Justice investigators in Washington and Manhattan have been investigating the bank’s efforts to look for signs of money laundering through cryptocurrencies. However, at the moment it is not known for sure whether US regulators have been able to identify any evidence of Signature’s dishonest activities.

In addition to Signature, US regulators are scrutinizing Silicon Valley Bank (SVB), which closed days before Signature. Federal prosecutors and the US Securities and Exchange Commission are now investigating whether there were any violations of the rules of trade by representatives of top management.