Home > NEWS > Signature’s crypto clients told to close their accounts by April 5: Report

Signature’s crypto clients told to close their accounts by April 5: Report

Any crypto deposits not transferred to another bank by April 5 will be liquidated and a check mailed to the client's address.

It is reported that the digital money customer of the signing bank is required to withdraw his assets and find another bank by April 5, or his account will be closed by federal regulators.

A spokesman for the American Deposit Auto Insurance Company said on March 28 that the agency had touched Signature depositors, whose deposits were not included in NYCB's bid, confirming that the deposits belonged to digital currency customers, Bloomberg News reported.

The depositor whose account is closed will receive a bank draft and mail it to his company's registered address, so the person who has a signature but cannot transfer the funds should at least ensure that his company's registered address is up to date.

Cointelegraph contacted FDIC for verification, but could not get a response when it was published.

Although New York City District Bank (NYCB) bought most of the deposits and credit held by Signature Bank on March 19th, the FDIC transaction does not include "approximately $4 billion in deposits related to the former Signature Bank digital banking process."

Signature's payment system, Signet, is also excluded from buying and selling, and the site is applied by blockchain to promote real-time payment without deducting transaction fees and restrictions. The fate of Signet is still uncertain.

Signature, based in New York, was shut down by New York State regulators on March 12, mainly because of concerns that the company was facing bank crowding out and a "systemic risk" to the US economy.

FDIC was chosen as the receiver of the bank, which means that its goal is to manage methods rather than capital assets.

Banks interested in recovering Signature assets are required to submit bids to FDIC by March 17, and FDIC is reported to be concerned only with bids from banks with current banking licenses.

by Luke Huigsloot
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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