Reports have emerged that clients of Signature Bank who use its cryptocurrency services have until April 5 to withdraw their funds or have their accounts closed by federal regulators.
New York Community Bancorp (NYCB) bought the majority of Signature Bank’s deposits and loans on March 19, but around $4 billion of deposits from the bank’s digital banking business were excluded from the deal.
According to a spokesperson from the Federal Deposit Insurance Corporation (FDIC), the agency was “reaching out to depositors from Signature” who were not included in NYCB’s bid.
The FDIC was appointed receiver of Signature Bank when it was closed by New York regulators on March 12. Signature’s payments platform, Signet, which is powered by blockchain technology, was also excluded from the NYCB deal, leaving its future uncertain.
