Bitcoin

Signature Bank is for sale after being closed down by state officials on Sunday, but any potential buyer will apparently have to agree to a big caveat: no cryptocurrency. Reuters broke the news on Wednesday evening, citing persons familiar with the situation.The weekend shutdown of the New York-based bank came two days after the failure of another California-based bank, Silicon Valley Bank (SVB), and less than a week after the failure of another California-based bank, Silvergate Bank. The three now-defunct banks were all renowned as crypto-friendly financial organizations.Signature Bank, whose crypto clients accounted for a quarter of its deposits, was apparently under investigation by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) for potentially weak monitoring that allowed money laundering.In February, a class action complaint was launched against Signature Bank, alleging that the bank was aware of — and facilitated – the &#34;now infamous FTX fraud.&#34; Signature Bank is accused of knowing about and allowing the &#34;commingling of FTX customer monies within its proprietary, blockchain-based payments network, Signet.&#34;Many in the crypto business, including former acting Comptroller of the Currency and former Binance.US CEO Brian Brooks, have theorized that the closure of the three crypto-friendly banks is the result of a coordinated effort by regulators to isolate the crypto industry from the banking system.Signature Bank board member and former Democratic congressman Barney Frank, who co-authored the Dodd-Frank Act, also indicated the takeover was motivated by anti-crypto sentiment, telling CNBC that Signature Bank was solvent - and that regulators intervened regardless to send a message.&#34;I believe officials intended to convey a very strong anti-crypto message,&#34; Frank told CNBC. However, the New York Department of Financial Services (NYDFS) has disputed that cryptocurrency played any role in its decision to close Signature Bank, instead citing a &#34;crisis of confidence&#34; in the bank&#39;s leadership. According to Reuters, bids for the acquisition of Signature Bank are due by Friday, March 17.

Signature Bank’s Prospective Buyers Must Agree to Give Up All Crypto Business: Report

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