U.S. Attorneys were investigating Signature Bank’s ties to crypto customers before regulators suddenly intervened in the lender’s business over the weekend. BloombergNews on Tuesday, citing people familiar with the matter.
U.S. Department of Justice investigators in Washington and Manhattan investigated the bank is now bankrupt took the necessary steps to detect possible money laundering by its customers, according to the report, adding that the Securities and Exchange Commission (SEC) is also monitoring the bank.
The report comes after financial regulator New York previously announced its decision to close Signature Bank it had “nothing to do with crypto” but was caused by what he called a “serious crisis of confidence in the bank’s management” after the collapse Bank of Silicon Valley (SVB).
Photo: Reuters
Federal Deposit Insurance Corporation (FDIC), which took control of the creditor, declined to comment on the information.
Signature Bridge Bank, an FDIC-run bank created after state regulators shut down Signature Bank, also declined to comment.
The SEC and the Department of Justice did not immediately respond to a request for comment from Reuters.
State regulators closed on Sunday SignatureBankbased in New York, the third largest bankruptcy of America’s banking history, and two days after the Silicon Valley Bank (SVB) was shut down by the authorities in a crash that left billions of deposits stranded.
In September, almost a quarter of Signature Bank’s deposits came from the banking sector. cryptocurrenciesbut in December, the bank announced that it would cut its cryptocurrency-related deposits by $8 billion.
Reuters
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
