Crypto customers at Signature Bank are required to close their accounts within a week!

The notice comes after NYCB purchased most of Signature Bank’s deposits and loans.

After Signature Bank was placed in receivership by the FDIC, it began the bidding process for its remaining business operations, as well as the brand associated with the company.

The FDIC acquisition came shortly after the collapse of both Silvergate and SVB.

The decision may have been due to the ongoing investigation into the “Signature” transactions, during which representatives of “Signature Bank” were unable to provide accurate data regarding the deficit incurred following the bankruptcy of SVB.
The decision to withdraw crypto investments:

At the time, there were rumors that any company intending to buy Signature Bank would have to agree to dump cryptocurrency investments.

Signature Bank, which, along with Silvergate, has provided much of the infrastructure for crypto companies, wasn’t forced to give up crypto investments.

According to the FDIC, no divestment was required, although they did not notify potential clients regarding the risks of cryptocurrency.

Shortly thereafter, New York Community Bancorp acquired some of Signature’s loans and most of its deposits through its subsidiary, Flagstar Bank.

About $4 billion in deposits from crypto customers were stripped away.

These deposits have remained in receivership at the FDIC, along with the “Signet” platform, which provides Signature Banks’ payment network developed for cryptocurrency payments.

Current rumors suggest that crypto-related deposits will soon be liquidated, but the FDIC declined to comment on the fate of Signet, which will remain under FDIC control until further notice.

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