Fallen Signature bank orders its crypto clients to close their accounts by April 5

Signature bank was shut down by FDIC and is taken over by Flagstar bank

The U.S. based Signature bank has given the ultimatum to its crypto clients to withdraw crypto assets and close their accounts by April 5 as per the instructions given to them by federal regulators.

It was also clarified by the spokesperson representing the United States Federal Deposit Insurance Corporation (FDIC) that the depositors who have their account closed by the bank and were unable to withdraw funds will receive a check to their registered address.

This is done to assure the depositors that their funds are safe after the shutdown of Signature bank. The eligible depositors are requested to keep their addresses up-to-date for the same reason.

FDIC has already sold Signature bank’s deposits to Flagstar bank except for its crypto assets. Flagstar is a subsidiary of New York Community Bancorp.

Also excluded from the deal was Signature’s Signet, a payment platform powered by blockchain technology to facilitate real-time transactions with no fees or limits.

Signature lost 20% of its deposits, the day after Silicon Valley Bank (SVB) collapsed. FDIC was then appointed to take control and administer the funds and assets associated with the bank.

The failure of banks triggered the memory of the 2007 financial crisis. This time it started with Silicon Valley Bank (SVB) and was followed by Signature Bank & Credit Suisse.

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