Home » Signature Bank Placed in Receivership by FDIC

Signature Bank Placed in Receivership by FDIC

by Logan King

The U.S. authorities recently placed Signature Bank in receivership, due to significant liquidity issues. This decision came as a shock to many in the crypto industry, as the bank had a quarter of its deposits coming from the sector. Companies such as Circle, Coinbase, and Paxos had significant assets stored in Signature Bank, and the FDIC put the bank up for sale with the caveat that only potential buyers with an existing bank charter were allowed to view its financials. The Royal Bank of Canada and PNC Financial Services both decided against a purchase.

Initially, it was reported that the FDIC had informed potential buyers that they would be required to divest from the cryptocurrency industry completely. However, the FDIC has since denied any such limitation, and instead referred potential buyers to an earlier statement that highlighted the risks associated with the crypto-asset sector. The FDIC spokesperson stated that potential buyers are in a position to declare which assets and former clients they would like to take on, and are neither prohibited nor discouraged from continuing existing business relations with the crypto industry. The FDIC is currently making a second attempt at selling off Signature Bank.

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