The Federal Deposit Insurance Corporation (FDIC) has informed customers who hold cryptocurrency with Signature Bank (SB) that they must transfer their funds and close their accounts by April 5th. This comes after the FDIC notified SB of their shutdown earlier this month.
While Flagstar Bank, a subsidiary of New York Community Bankcorp, entered into an agreement with the FDIC to purchase deposits and loans from Signature Bank on March 19th, the deal only covers select portions of Signature Bank’s portfolio.
“Approximately $4 billion in deposits related to Signature Bank’s digital asset business are not included in the Flagstar Bank rescue agreement,” said an FDIC spokesman.
The agreement between Flagstar and the FDIC will allow Flagstar to handle all deposits, including some credit portfolios. About $60 billion of Signature Bank’s loans and $4 billion in deposits will remain under government protection.
Cryptocurrency customers who hold accounts with Signature Bank are advised to transfer their funds to a different institution before April 5th to avoid any potential loss of funds.
