Signature Bank has given crypto clients time to close their accounts

The Federal Deposit Insurance Corporation (FDIC) of the United States has given all holders of crypto assets in the accounts of the bankrupted Signature Bank until April 5 to close their accounts and withdraw their funds, Bloomberg reports.

“The Federal Deposit Insurance Corporation has informed crypto clients with deposits in the defunct Signature Bank that they must close their accounts and withdraw their funds by April 5,” the publication said.

It is noted that the cryptocurrency business was not included in the deal to purchase Signature Bank by Flagstar Bank, which acquired almost all of the deposits and part of the credit portfolio of the bankrupt American bank. As a result of the deal with Flagstar Bank, a subsidiary of New York Community Bancorp, assets worth $38.4 billion out of $110.4 billion were transferred under the control of Signature Bank.

However, the deal did not include deposits of $4 billion and loans of $60 billion, which remain under the control of the FDIC.

New York’s Signature Bank was closed by authorities due to “systemic risks” after the Californian Silicon Valley Bank, one of the twenty largest commercial banks in the United States, went bankrupt. The problems of the American banking system are linked to the increase in the interest rate by the Federal Reserve System, which led to the devaluation of assets on the balance sheets of many financial institutions.