- signature bank (NASDAQ:) has been shut down by the New York Department of Financial Services.
- Crypto companies such as Coinbase (NASDAQ:), Celsius, and Paxos have disclosed their exposure to Signature Bank.
- The fall of Signature Bank, in the wake of the collapse of Silvergate and SVB, shocked the entire financial sector.
As recently revealed, leading cryptocurrency exchanges Coinbase, Paxos Trust Company, and Celsius Network were affected by the FDIC’s closure of its signature bank on March 12. March 13.
Cryptocurrency firm Coinbase shared a thread on Twitter exposing the company’s exposure to signature banking. Notably, Coinbase tweeted that it has approximately $240 million in corporate equity in Signature Bank and added that the company expects a full refund:
As of the close of business on Friday, March 10, Coinbase had approximately $240 million in corporate cash in Signature. As stated by the FDIC, we expect a full refund of this money. https://t.co/XY5L7m4RMs
– Coinbase (@coinbase) March 12, 2023
Similarly, the New York-based financial institution and technology company Paxos Trust Company revealed on its official Twitter page that the company has about $250 million in Signature Bank, adding:
Paxos currently holds $250 million in Signature Bank and carries private deposit insurance well in excess of our cash balance and FDIC limits per account. The pursuit of private deposit insurance is part of our conservative approach to managing client assets that exceed FDIC insurance limits.
Additionally, the Twitter page of Celsius Network’s bankrupt lending subsidiary Celsius Network’s official Committee for Unsecured Creditors has come forward to state that Celsius has “some of its money” in Signature Bank, but the amount was not disclosed:
Today, the US government announced the closure of Signature Bank, where Celsius held some of its funds. All depositors will be made complete, according to the US government percentage, and the UCC is assessing the situation and will provide further updates. The announcement is here: https://t.co/v5GSvTL7JY
– Official Centennial Committee on Unsecured Creditors (CelsiusUcc) March 12, 2023
Notably, Superintendent Adrienne A. Harris announced that Signature Bank was acquired by the New York Department of Financial Services (NYDFS) in order to “protect the US economy” as the bank poses a “systemic risk”.
It is worth noting that the sudden collapse of Silvergate Capital (NYSE:) Bank, Signature Bank, and Silicon Valley Bank affected the financial sector in general, causing concern among investors and institutions.
Three major crypto companies post-signature bank crisis victims debut in Coin Edition.