April 8 (Reuters) - The US arm of cryptocurrency exchange Binance is struggling to find a bank to handle its customers' cash after Signature Bank went bankrupt. (SBNY.PK) last month, the Wall Street Journal reported on Saturday, citing people familiar with the matter.
Previously, deposits were sent to Signature Bank or Silvergate Capital Corp. (BREAST), both seen as crypto-friendly banks. However, after both failed, the exchange is scrambling to find a new banking partner, according to the report.
Binance.US is using at least one intermediary to store funds, according to the report, adding that since the money is held by a third party, it can slow down the sending and movement of funds.
The company has unsuccessfully tried to establish relationships with Cross River Bank and Customers Bancorp Inc. (CUBI.N)the report said, adding that banks are reluctant due to concerns about regulatory risk.
The three companies did not immediately respond to a Reuters request for comment outside of normal business hours.
โWe work with multiple US-based banking and payment providers and continue to add new partners while updating our internal systems to create a more stable fiat platform and offer additional services,โ a Binance.US spokesperson told the WSJ.
Last month, the US Commodity Futures Trading Commission (CFTC) sued Binance along with its CEO and former senior compliance executive, alleging that they were operating an "illegal" exchange. and a "fake" compliance program. Since the lawsuit, investors withdrew $1.6 billion from Binance.
Reporting by Akanksha Khushi in Bangalore; Edited by Lisa Shumaker
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