HomeCryptocurrenciesFDIC Gives Signature’s Crypto Customers a Deadline to Move Their Funds

FDIC Gives Signature’s Crypto Customers a Deadline to Move Their Funds

The U.S. Federal Deposit Insurance Corp. (FDIC) has notified the crypto-focused clients of collapsed Signature Bank that they have until April 5 to move their funds and close their accounts with the bank.

Signature was closed by regulators in early March after clients withdrew more than $10 billion in deposits following the collapse of Silicon Valley Bank, another crypto-friendly institution. A week later, the majority of the bank’s assets were acquired by New York Community Bancorp and its subsidiary Flagstar Bank.

However, the assets related to cryptocurrency businesses were left out of the deal. FDIC was left sitting on $4 billion in deposits related to digital assets and wants them out of their hands.

FDIC’s deputy director of communications David Barr told Forbes in a mail exchange that the agency will mail check to the companies that fail to meet the deadline.

“If the customers with deposits not assumed by Flagstar Bank have not moved their money by then, the FDIC will mail a check to their address of record,” said Barr.

The agreement with Flagstar Bank also left FDIC with around $60 billion of Signature Bank’s loans. These assets will most likely be moved in a separate deal for a large discount.

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