FDIC Gives Signature Bank Crypto Clients Deadline to Move Funds

Signature Bank, a New York-based bank that serves cryptocurrency clients, has reportedly given its clients until April 5 to move their funds out of the bank or have their accounts closed by the Federal Deposit Insurance Corporation (FDIC), which was appointed as the receiver of the bank after it was closed by New York regulators on March 12.

According to a Bloomberg report, the FDIC did not include about $4 billion of deposits related to Signature Bank’s digital banking business in the New York Community Bancorp (NYCB) deal, which bought most of Signature Bank’s deposits and loans on March 19.

FDIC confirms deposits belong to digital asset clients

A spokesperson for the FDIC confirmed that the agency was reaching out to depositors from Signature whose deposits were not included in NYCB’s bid, saying that these deposits belonged to digital asset clients.

Depositors whose accounts are closed will receive a check to their registered address. Anyone with funds held with Signature but unable to transfer them out should ensure their registered address is up-to-date.

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The fate of Signature Bank’s payments platform, Signet, which is powered by blockchain technology to facilitate real-time payments with no transaction fees or limits, is still uncertain.

As the crypto industry continues to evolve, banks and regulators are struggling to keep up with the changes, leading to the closure of some banks that serve crypto clients. Signature Bank is one such bank, and its crypto clients have until April 5 to move their funds out or have their accounts closed by the FDIC. The fate of Signature Bank’s payments platform, Signet, is still uncertain.