Signature banks that are digital-friendly are reportedly conducting investigations by two U. S. government agencies before they went bankrupt.

Justice Department investigators have investigated whether Signature has implemented adequate responses to test its customers' potential money laundering, Bloomberg News said on March 15, citing people familiar with the matter.

It was stressed that regulators were particularly concerned about whether the bank had implemented a pre-emptive game to detect "signs of crime" in transactions and to conduct the necessary checks on account holders.

Bloomberg News quoted two unnamed sources as saying that another investigation by the Foreign Securities and Exchange Commission (SEC) was still "investigating" the bank. Small details about the features of the SEC survey have not been reported.

At this stage, it is not clear when the investigation began and, if any, whether it had any impact on the recent decision of New York State regulators to shut down the bank.

It is reported that the signatures and their staff have not been accused of misconduct and the investigation may be conducted without charges or further actions by the SEC or the judiciary (DoJ).

The report was to be released on March 14 after shareholders filed a class action lawsuit against JPMorgan and former management, saying they were "doing well", but three days later, the bank was forcibly closed.

Myers Donald, a former member of the bank's supervisory board, said on March 13 that regulators expected "a strong anti-encrypted message".

Donald added that the bank, which was password-friendly, became a "poster boy" because it "did not fail based on stock fundamentals".

Signature was shut down on March 12 as part of a series of bank cancellations, including Silvergate Capital and SVB.

Since then, the US Justice Department and SEC have reportedly investigated the bankruptcy of Silvergate Capital and SVB respectively.

According to reports, regulators will investigate the bankruptcy of the bank, including verification of securities filings that reveal the sale of shares by CEO Greg Becker and Chief operating Officer Toni Baker two weeks before SVB's bankruptcy.

SEC did not comment on the matter, but Gamo Gensler, the current chairman of SEC, said on March 12th that if we found a violation of the federal securities law, it would investigate and take enforcement action.