Crypto-Friendly Signature Bank Shut Down by State Regulators, the 3rd Bank Fall

Reported Bloomberg, New York-based Signature Bank, known for being crypto-friendly and having a significant number of crypto industry clients including Circle, Coinbase, and Fireblock, has been shut down by state regulators. The announcement was made by the Federal Reserve, which stated that the closure was done to protect depositors.

This closure marks the third bank collapse in less than a week, following Silvergate Bank's voluntary liquidation and Silicon Valley Bank's shutdown.

The New York Department of Financial Services Superintendent Adrianne Harris said in a statement that the Federal Depository Insurance Corporation (FDIC) had taken receivership of the bank "to protect depositors." The joint statement from the Federal Reserve, FDIC, and U.S. Treasury Department assured depositors that they would be made whole.

"Signature Bank is a New York state-chartered commercial bank and is FDIC-insured, with total assets of approximately $110.36 billion and total deposits of approximately $88.59 billion as of December 31, 2022,"

The closure of Signature Bank, known for its strong support for cryptocurrency, is likely to be seen as a another blow to the cryptocurrency industry.

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