Signature Bank, which offers services to crypto customers, was shut down Sunday by state regulators, the Federal Reserve reported.
The New York Department of Financial Services Superintendent Adrianne Harris said in a statement that the Federal Depository Insurance Corporation (FDIC) had taken control of the bank. This is the third bank to fail in under a week, following Silvergate Bank and Silicon Valley Bank, which were closed on Wednesday and Friday, respectively.
Harris explained that the closure was done to protect depositors. She further pointed out that Signature Bank is a New York state-chartered commercial bank and is FDIC-insured, with total assets of approximately $110.36 billion and total deposits of approximately $88.59 billion as of December 31, 2022.
The announcement of the bank’s closure comes just months after Signature Bank announced it would be cutting back on its crypto services. FDIC said that all deposits of the bank will be honored and no losses will be suffered by the taxpayers.
UPDATE (March 12, 2023, 23:35 UTC): Adds additional information.
