{"id":382267,"date":"2023-03-29T18:40:14","date_gmt":"2023-03-29T18:40:14","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=382267"},"modified":"2023-03-29T18:40:14","modified_gmt":"2023-03-29T18:40:14","slug":"fdic-tells-signature-bank-crypto-clients-to-close-accounts-by-april-5","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/fdic-tells-signature-bank-crypto-clients-to-close-accounts-by-april-5","title":{"rendered":"FDIC Tells Signature Bank Crypto Clients To Close Accounts By April 5"},"content":{"rendered":"

The United States Federal Deposit Insurance Corporation (FDIC) has ordered Signature Bank crypto clients to move their money to other banks and close their accounts by April 5. In a March 28 <\/span>report<\/span><\/a> by <\/span>Bloomberg<\/span><\/i>, the regulator’s spokesperson asserted that the FDIC is reaching out to depositors from the collapsed lender’s Signature Bank, whose deposits are not included in Flagstar Bank bid, a unit of New York Community Bancorp’s (NYCBs). This is to confirm that these deposits belonged to digital asset users. The spokesperson said:<\/span><\/p>\n

“Flagstar’s bid did not include around $4 billion in deposits linked to Signature’s digital-asset business. We are encouraging clients to move those deposits by April 5.”<\/span><\/i><\/p><\/blockquote>\n

However, any crypto deposits not transferred or taken out by April 5 will be liquidated, and the regulators will mail the check to the recorded address. <\/span><\/p>\n

The $4 billion figure is 4.5% of the total $88.6 billion deposits that Signature Banks had last December 31.<\/span><\/p>\n

Flagstar Bank got into a deal with the FDIC to buy deposits and loans from Signature Bank on March 19. However, the crypto-related stakes weren’t part of the agreement. Under a purchase and assumption agreement, the regulator revealed that Flagstar’s subsidiary would see about $38.4 billion of non-crypto-related deposits and $12.9 billion in loans. Notably, Signature Bank’s 40 branches began operating as Flagstar Bank on March 20, where all the deposits assumed by Flagstar would continue to be insured until the $250,000 insurance limit.<\/span><\/p>\n

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Today, we entered into an agreement with a subsidiary of New York Community Bancorp, Inc., to purchase and assume deposits and assets out of Signature Bridge Bank. Read more ➡️ https:\/\/t.co\/bSshY93lBh<\/a>. pic.twitter.com\/b9RBvYtGF7<\/a><\/p>\n

— FDIC (@FDICgov) March 19, 2023<\/a><\/p><\/blockquote>\n