Signature Bank's cryptocurrency clients have reportedly been given until April 5 to withdraw their funds and find another bank, or their accounts will be closed by the federal regulator.
According To Bloomberg, a spokesperson for the United States Federal Deposit Insurance Corporation said on March 28 that the agency was contacting Signature depositors whose deposits were not included in the NYCB offer, confirming that these deposits belonged to digital asset clients.
Depositors who have their accounts closed will receive a check to their registered address, so anyone with funds held with Signature but unable to transfer them should at least ensure their registered address is up to date.
Cointelegraph reached out to the FDIC for confirmation, but did not hear back by press time.
While New York Community Bancorp (NYCB) bought most of the deposits and loans held by Signature Bank on March 19, the FDIC settlement did not include "approximately $4 billion of deposits related to the former Signature Bank's digital banking business."
Related: Crypto-friendly banks mismanaged traditional risks, FDIC chief says at Senate hearing
Also excluded from the deal was Signature's payment platform, Signet, which is powered by blockchain technology to facilitate real-time payments without fees or transaction limits. Signet's fate is still uncertain.
New York-based Signature was closed by New York regulators on March 12 amid concerns that it was experiencing a bank run and posed a "systemic risk" to the US economy.
Gruenberg: Signature Bank lost 20% of its deposits in a matter of hours on March 10, the day SVB was shut down.
Signature had a negative balance with the Federal Reserve at the close of business and "bank management was unable to provide precise data on the amount of the deficit." pic.twitter.com/679dNnnrzJ
—Nick Timiraos (@NickTimiraos) March 27, 2023
The FDIC was appointed as the bank's trustee, meaning it was charged with managing the funds and property associated with it.
Banks interested in acquiring Signature's assets were asked to submit offers to the FDIC by March 17, and the agency will reportedly only consider offers from those with an existing banking charter.
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