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U.S. FDIC tells Signature Bank’s crypto clients to close accounts by April 5

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The U.S. Federal Deposit Insurance Corp (FDIC) has taken the step of informing Signature Bank’s (SBNY.O) crypto clients that they have an April 5th deadline to close their accounts and move their money.

The deposits in question were not part of a rescue deal arranged with Flagstar Bank, which is a unit of New York Community Bancorp (NYCB.N), earlier this month.

“Flagstar’s bid did not include about $4 billion in deposits related to Signature’s digital-asset business,” an FDIC spokesperson said.

“Those are the deposits we are encouraging customers to move before April 5. If they have not by that day, we will mail checks to the address on record.”

On March 19th, Flagstar entered into an agreement with U.S. regulators to purchase deposits and loans from New York-based Signature Bank.

The FDIC had said that the deal would see Flagstar Bank assume substantially all of Signature Bank’s deposits, some of its loan portfolios and all 40 of its former branches. Roughly $60 billion of Signature Bank’s loans and $4 billion of its deposits would remain with it in receivership.

ARTICLE: PAUL MURDOCH

MANAGING EDITOR: LUKE MOCHERMAN

PHOTO CREDIT: BLOOMBERG

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Paul Murdoch

Paul, 37, is from Scotland in the UK, but currently lives and works in Bangkok. Paul has worked in different industries such as telemarketing, retail, hospitality, farming, insurance, and teaching, where he works now. He teaches at an all-girls High School in Bangkok. “It’s a lot of work, but I love my job.” Paul has an active interest in politics. His reason for writing for FBA is to offer people the facts and allow them to make up their own minds. Whilst he believes opinion columns have their place, it is also important that people can have accurate news with no bias.

Paul, 37, is from Scotland in the UK, but currently lives and works in Bangkok. Paul has worked in different industries such as telemarketing, retail, hospitality, farming, insurance, and teaching, where he works now. He teaches at an all-girls High School in Bangkok. “It’s a lot of work, but I love my job.” Paul has an active interest in politics. His reason for writing for FBA is to offer people the facts and allow them to make up their own minds. Whilst he believes opinion columns have their place, it is also important that people can have accurate news with no bias.

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