ChainCatcher message reveals that, according to new details disclosed in the documents, from 2019 to this year, Binance and related entities transferred approximately $70 billion through accounts at Silvergate Bank and Signature Bank. Among them, Silvergate provided over $50 billion in deposits for Binance-related parties, while Signature handled over $19 billion. Some of the funds have flowed to foreign entities associated with Binance. (Bloomberg)

ChainCatcher News, Martin Gruenberg, the chairman of the Federal Deposit Insurance Corporation (FDIC), stated during a hearing on "Oversight of Prudential Regulators" that the fundamental reason for the failure of Signature Bank was mismanagement. According to the FDIC's Chief Risk Officer, the bank's management did not prioritize good governance practices; they were less responsive or timely in addressing FDIC regulatory recommendations; and they funded their rapid growth by overly relying on uninsured deposits without implementing basic liquidity risk management practices and controls. Additionally, Signature Bank failed to understand the risks associated with its connections and dependencies on deposits from the cryptocurrency industry.Although the consequences of Silvergate's liquidation and the failure of Silicon Valley Bank (SVB) are unprecedented, the poor governance and inadequate risk management practices of Signature Bank prevented it from effectively managing its liquidity during times of stress, making it unable to meet very large withdrawal requests. (Source link)

ChainCatcher News, the investigation by the Federal Deposit Insurance Corporation (FDIC) into the collapse of Signature Bank found that its cryptocurrency deposits posed risks. Before its collapse, Signature Bank managed $110 billion in assets, with nearly all deposits related to digital assets being uninsured.The FDIC stated that the management of Signature Bank did not understand the inherent risks of uninsured deposits and was not prepared for a bank run. (Source link)

ChainCatcher News: The report from the Federal Deposit Insurance Corporation (FDIC) indicates that the failure of Signature Bank was due to mismanagement and the "contagion effect" from the collapses of Silicon Valley Bank and Silvergate Bank. The FDIC stated that Signature Bank heavily relied on uninsured deposits and lacked strong liquidity risk management measures, overall demonstrating poor risk management. Additionally, the bank run triggered by the failures of other banks exacerbated the situation. Furthermore, Signature Bank's services to the crypto industry were also considered a major risk.The FDIC noted that shortly after the New York State Department of Financial Services (NYDFS) took over Signature Bank in March, the FDIC began reviewing its oversight of the bank. Although the industry claims that Signature failed specifically due to its services for crypto clients, NYDFS head Adrienne Harris has repeatedly stated that the bank had other issues.Moreover, the Federal Reserve and the Government Accountability Office (GAO) released their respective assessments of Silicon Valley Bank and Signature Bank, with the Federal Reserve attributing the collapse of Silicon Valley Bank to a series of mismanagement issues, while factors such as interest rate hikes and liquidity risks further worsened the situation. The GAO pointed out that Signature had "reduced its exposure to crypto deposits" in the 12 months prior to its failure. Silicon Valley Bank was affected by rising interest rates, while Signature Bank had exposure in the digital asset sector. These banks failed to adequately manage deposit risks.All three reports highlighted that the lack of action from federal regulators was a contributing factor, stating that banking regulators could have taken action earlier to request more information or otherwise manage the banks and their risks. (source link)

ChainCatcher news, a Binance.US spokesperson stated that the automatic clearing house (ACH) deposit and withdrawal services for Signature Bank are expected to be restored within 24 hours. According to the status update, debit card, Apple Pay, and Google Pay deposits were also temporarily unavailable to some Binance.US users on Wednesday. (source link)

ChainCatcher news, according to testimony related to the U.S. Senate hearing, Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation (FDIC), stated that an investigation is underway into the actions of the leaders of Signature Bank and SVB Bank, holding them accountable for the banks' failures, and detailing their mismanagement and the risks of dangerous business concentration. (CoinDesk)

ChainCatcher news, according to Jin10, Huobi has withdrawn all funds from Signature Bank and Silvergate Capital, while the funds of the exchange's customers remain unaffected.A Huobi spokesperson stated, "Huobi previously had a bank account with Silvergate, but all assets were transferred out some time ago, and there is currently no financial partnership." They added that the funds held at Signature Bank have been withdrawn and sent to other financial institutions. Sun Yuchen stated that their business has not been affected by the collapse of those banks. (source link)

ChainCatcher News: In a speech at a banking conference, U.S. President Biden stated that the Federal Deposit Insurance Corporation has taken control of the assets of Signature Bank and Silicon Valley Bank.

ChainCatcher news, the Federal Reserve announced that, with the approval of the Treasury Secretary, the Treasury will allocate $25 billion from the Exchange Stabilization Fund as emergency loan support. The new financing plan will be provided through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year to banks, savings associations, credit unions, and other eligible deposit institutions, secured by U.S. Treasuries, agency debt, mortgage-backed securities, and other qualifying assets. These assets will be valued at par, and the BTFP will serve as an additional source of liquidity for high-quality securities, eliminating the need for institutions to quickly sell these securities during times of stress.Additionally, Signature Bank has been closed, and the New York Department of Financial Services has taken over Signature Bank. All depositors of Silicon Valley Bank and Signature Bank will be fully protected, but shareholders and certain unsecured bondholders will not be protected. The New York Department of Financial Services stated that they are working closely with other regulatory agencies. (source link)

ChainCatcher message, according to a report by Bloomberg, cryptocurrency exchange Kraken is withdrawing from using Signature Bank for some significant financial transactions. Kraken's non-corporate clients will no longer be able to use Signature for USD deposits or withdrawals. Deposits will be gradually phased out starting March 15, and withdrawals will end on March 30.Previously reported, cryptocurrency derivatives trading platform LedgerX stated that it would no longer use Silvergate Bank to receive domestic wire transfers, but instead would use Signature Bank. Signature indicated in December that it would reduce its exposure to the cryptocurrency industry. (Source link)

ChainCatcher news, the crypto-friendly bank Signature Bank announced that co-founder, president, and CEO Joseph J. Depaolo plans to transition to a senior advisor role in 2023. Chief Operating Officer Eric R. Howell will succeed Depaolo as president starting March 1, while continuing to serve as COO and a board member. Depaolo will retain the CEO position and remain on the bank's board. After Depaolo completes his transition to senior advisor, Howell will then be appointed as the new CEO. (source link)

ChainCatcher news, according to The Wall Street Journal, the Federal Home Loan Bank system (FHLB) has provided over $13 billion in loans to the two largest cryptocurrency banks, Signature Bank and Silvergate, to mitigate the impact of a surge in withdrawals.It is reported that the entity provided nearly $10 billion in loans to Signature Bank in the last quarter of 2022, making it one of the largest borrowing transactions in the banking industry in recent years. Additionally, Silvergate received at least $3.6 billion in loans from the FHLB.Previous reports indicated that in the fourth quarter of 2022, Silvergate experienced a significant outflow of deposits and took measures to maintain cash liquidity, including selling debt securities, resulting in a net loss attributable to common shareholders of $1 billion during that period. (Source link)

ChainCatcher news, Binance announced that as Signature Bank reduces its exposure to the digital asset market, the bank will only process user transactions over $100,000. "One of our banking partners, Signature Bank, announced that starting from February 1, 2023, it will no longer support any cryptocurrency exchange customers with transaction amounts below $100,000. This move affects all of its cryptocurrency exchange customers. Therefore, some individual users may not be able to use SWIFT bank transfers to buy or sell cryptocurrencies for amounts less than $100,000." A Binance spokesperson stated that other banking partners are not affected by this event and are currently "actively working to find alternative solutions," and that "0.01% of the transactions generated by users on average each month are serviced by Signature Bank."Previous news, Signature Bank stated that after the FTX collapse, its deposits in FTX were less than 0.1% of total deposits. At the beginning of last December, Signature announced it would reduce cryptocurrency-related deposits by $8 billion to $10 billion. Earlier this month, Signature Bank disclosed that its pre-tax, pre-provision earnings for 2022 reached a record $1.83 billion, an increase of 41.3% compared to $1.3 billion in 2021.ChainCatcher note: SWIFT (Society for Worldwide Interbank Financial Telecommunications) is a network used by financial institutions to transmit information and instructions. (Bloomberg)

ChainCatcher news, the crypto-friendly bank Signature Bank reported a net income of approximately $300 million for the fourth quarter of 2022, with earnings per share of $4.65, a 10% increase from the net income of $272 million in the fourth quarter of 2021. The pre-tax, pre-provision earnings for the fourth quarter of 2022 were $450.6 million, up 16.9% compared to $385.4 million in the fourth quarter of 2021.The net income for 2022 reached a record $1.34 billion, or diluted earnings per share of $207.6, compared to $918.4 million in 2021, which had diluted earnings per share of $15.03, a year-over-year increase of 46%. The pre-tax, pre-provision earnings for 2022 reached a record $1.83 billion, an increase of 41.3% from $1.3 billion in 2021. (Source link)