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The third largest bankruptcy in the United States. Signature Bank was popular among cryptocurrency holders

The third largest bankruptcy in the United States. Signature Bank was popular among cryptocurrency holders

On March 12, U.S. regulators shut down New York-based Signature Bank, making it the third largest bankruptcy in U.S. banking history.

Source:https://www.reuters.com/business/finance/new-york-state-regulators-close-signature-bank-2023-03-12/

According to the New York State Department of Financial Services, the Federal Deposit Insurance Corporation (FDIC) has taken control of Signature Bank, which had assets of $110.36 billion and deposits of $88.59 billion at the end of 2022.

All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and “no losses will be borne by the taxpayer,” the U.S. Treasury Department and other bank regulators said in a joint statement.

The bank provided services for placing digital assets on customer deposits, but did not invest in or trade cryptocurrencies, nor did it accept them as collateral for loans.

The bankruptcy came just two days after the authorities closed Silicon Valley Bank, which became the largest bank in the United States to fail after the 2008 financial crisis.

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