“Due to the FDIC’s hold on signature transactions, we are currently facilitating all customer cash transactions with other banking partners,” the tweet reads.
As of close of business on Friday, March 10, Coinbase had approximately $240 million in corporate money in Signature.… https://t.co/aP0hUtoSNP
— Coinbase (@coinbase) 1678665124000
State regulators closed New York’s Signature Bank on Sunday in what was the third-biggest bankruptcy in US banking history, two days after the authorities shut it down. Bank of Silicon Valley in a crash that landed on billions of deposits.
The Federal Deposit Insurance Corporation (FDIC) took control of Signature, which had $110.36 billion in assets and $88.59 billion in deposits at the end of last year, according to the New York State Department of Financial Services.
All Signature Bank and Silicon Valley Bank depositors will be reinstated and “the taxpayer will suffer no loss,” the US Treasury Department and other banking regulators said in a joint statement.
Discover stories that interest you
Employees apparently gathered at the company’s Manhattan headquarters for meetings on Sunday, ordering food from Carmine’s Italian restaurant and Starbucks coffee, a Reuters reporter at the scene said. People started leaving the building after the closure was announced.
Representatives for the lender did not immediately respond to a request for comment.
Signature’s failure followed the Friday shutdown of Silicon Valley Bank, the second-biggest in US history after Washington Mutual, which collapsed during the 2008 financial crisis.
Signature was a commercial bank with private client offices in New York, Connecticut, California, Nevada, and North Carolina and had nine national business lines, including commercial real estate and digital asset banking.
As of September, almost a quarter of its deposits were in the crypto sector, but in December, the bank announced that it would cut its crypto-related deposits by $8 billion.
In February, Signature Bank announced that its chief executive, Joseph DePaolo, would move to the position of senior adviser in 2023, to be succeeded by the bank’s chief operating officer, Eric Howell. DePaolo has served as president and CEO since the founding of Signature in 2001.