Mar Tue 2023 03:35:46
Kathmandu. The upheaval in the banking sector in America has surprised. After Silicon Valley Bank, Silvergate, now another bank is locked. Signature Bank, known as Crypto Friendly, has been temporarily shut down. This bank had stocks of cryptocurrencies and considering its risks, it was decided to close this regional bank for some time.
It was one of the two major banks lending to the crypto industry. With the bank collapse, it is seen that it will affect the crypto industry. According to the international media Reuters, as of December 31, the total assets of Signature Bank are 110.4 billion US dollars and the total deposits are 88.6 billion dollars.
Although Signature Bank was closed as the third bank closure in American history, the US Treasury Department and other bank regulators issued a joint statement on Sunday saying that all of Signature Bank's depositors' funds are safe.
The announcement was made by the U.S. federal government to prevent the widespread negative impact of problems with tech startup-focused lenders. Signature Bank is one of the main banks investing in the cryptocurrency industry. As of Dec. 31, Signature Bank had $110.4 billion in total assets and $88.6 billion in total deposits, according to a securities filing.
Signature Bank had a long-standing relationship with former President Donald Trump and his family, providing checking accounts for Trump and his businesses and financing several of the family's ventures. Signature Bank severed ties with Trump in 2021 after the deadly riots on Capitol Hill on January 6 and called on Trump to resign.