Flagstar resumes Signature with the exception of its crypto

The activities related to the crypto of the bank Signature will not be not taken over by Flagstar. 4 billion dollars from deposits will be returned.

Last night, the Federal Deposit Insurance Corporation announced that Signature Bank (Signature Bridge Bank), a New York-based crypto-friendly bank shut down by authorities earlier this month, is reportedly being taken over by Flagstar Banka financial institution founded in 1987 in Michigan.

Flagstar’s offer did not include about $4 billion in deposits associated with the former Signature Bank’s digital banking business. The FDIC will provide these deposits directly to customers whose accounts are associated with the digital banking business,” the statement said.

This will return the deposits of customers working around cryptocurrencies. Bookmark, the bank’s real-time payment network heavily used by its crypto customers and Silvergate’s equivalent of SEN, remains under FDIC control, according to Bloomberg.

Signature served large U.S. firms specializing in digital assets, including Circle.

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Following the bank’s closure, a former U.S. congressman and Signature board member argued that regulators wanted to send a “very strong anti-crypto message” by closing the institution.

The New York State Department of Financial Services had later claimed that the case had nothing to do with crypto. For the regulator, the loss of confidence in the management and the beginning of a banking panic justified its closure.

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