US FDIC sets deadline for Signature Bank’s crypto accounts

U.S. Federal Deposit Insurance Corp (FDIC) has given Signature Bank’s crypto clients a deadline until April 5 to close their accounts and move their money, as they are not part of a rescue deal with Flagstar Bank.

“Flagstar’s bid did not include about $4 billion in deposits related to Signature’s digital-asset business, encouraging customers to move them before April 5. If they have not by that day, we will mail checks to the address on record,” said an FDIC spokesperson.

The New York Community Bancorp unit, Flagstar Bank, had an agreement with U.S. regulators to purchase deposits and loans from the recently collapsed Signature Bank on March 19.

The Flagstar Bank Deal allows it to assume all of Signature Bank’s deposits, loan portfolios and its 40 branches, with $60 billion of Signature Bank’s loans and $4 billion of its deposits to remain with it in receivership, said the FDIC.