Signature Bank Gets April 5th Deadline From FDIC for Crypto Clients to Withdraw Funds
Following the bank’s closure last month, Signature Bank has set an April 5 deadline for crypto clients to withdraw funds. Specifically, the FDIC will begin account closures at that date, with cryptocurrency companies and depositors not included in a recent rescue deal orchestrated by Flagstar Bank.
The bank has agreed to purchase deposits and loans from Signature bank following an agreement with regulators. Moreover, the Michigan financial institution is a subsidiary of New York Community Bancorp. Yet, they will not be purchasing bank depositors operating in the digital asset industry.
Signature Bank Crypto Clients Race Against Clock
Earlier this month a budding banking crisis was set off by the collapse of Silicon Valley Bank. Moreover, as the Federal Reserve noted a bailout for their depositors, it quietly announced the collapse of Signature Bank. Now, some clients of that institution that operate in the digital asset sector are racing against the clock.
Specifically, Signature Bank has given an April 5 deadline for crypto clients to withdraw funds held at the bank. Moreover, the FDIC has announced that same April date as the closure of accounts, with crypto clients not included in recent rescue efforts.
Yet, Bitcoinist reports that the deadline is approaching with many crypto clients scrambling. Moreover, the Flagstar rescue effort does not include the $4 billion in deposits tied to Signature Banks’ cryptocurrency deposits.
Conversely, the FDIC stated that intervening action was required for Signature Bank depositors following the fate of SVB and Silvergate. Subsequently, the regulator announced on March 28 that all crypto clients would not be bailed out and were required to move their funds out of the financial institution.
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