The U.S. Federal Deposit Insurance Corp (FDIC) has informed collapsed lender Signature Bank's crypto clients that they have until April 5 to close their accounts and move their money.
A person walks into the lobby of the Signature Bank headquarters, in New York City, U.S., March 13, 2023. REUTERS/David 'Dee' Delgado/File PhotoThe deposits in question were not part of a rescue deal arranged with Flagstar Bank, a unit of New York Community Bancorp"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." Flagstar on March 19 entered into an agreement with U.S. regulators to buy deposits and loans from New York-based Signature Bank.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.
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