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, citing informed sources from Bloomberg, reported that Tether instructed crypto clients to send dollars to its Bahamian banking partner, Capital Union Bank Ltd., via Signature's Signet payment platform to pay for its USDT stablecoin. The sources said that while it is unclear when this arrangement began, it had already started before regulators took over Signature Bank last month.Tether stated in an email: "The banks that Tether uses are always able to access multiple banking channels and counterparties." The company's risk management "allows us to identify specific risks and weaknesses that others overlook, ensuring that our entities are not exposed to direct or indirect risks from Signature." Previously, it was reported that U.S. prosecutors had been investigating Signature Bank's dealings with crypto clients before regulators suddenly took over the bank.According to sources, investigators from the Justice Department in Washington and Manhattan are looking into whether Signature took adequate measures to detect potential money laundering by clients, such as carefully scrutinizing account openers and monitoring transactions for signs of criminal activity. The bank and its employees have not been accused of wrongdoing, and the investigation may conclude without further action.It is reported that Capital Union, a boutique bank headquartered in Nassau, Bahamas, lists digital assets as one of its main businesses, alongside lending, wealth management, trading, and execution. The company was founded in 2013, with a net profit of $50.1 million in 2021 and total assets of $1.56 billion. Capital Union and another Bahamian bank, Deltec Bank & Trust Ltd., are responsible for safeguarding Tether's cash reserves, while Cantor Fitzgerald LP is the custodian of the U.S. Treasury securities held by Tether. (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, the Federal Deposit Insurance Corporation (FDIC) has notified cryptocurrency clients of the failed Signature Bank that they must close their accounts and transfer their funds by April 5.It is reported that Flagstar reached an agreement with U.S. regulators on March 19, and Flagstar Bank will take on nearly all of Signature Bank's deposits and part of its loan portfolio. (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, Signature Bank announced that it will reopen on Monday, and its operations have not been restricted or interrupted. (Jin10)

ChainCatcher News, the Federal Deposit Insurance Corporation (FDIC) announced that one week after the bankruptcy of Signature Bank, it has sold most of its deposits to Flagstar Bank, a subsidiary of New York Community Bank. Starting Monday, 40 branches of Signature Bank will operate as Flagstar Bank. Signature's customers can conduct banking on Monday without making any changes.New York Community Bank purchased nearly all of Signature's deposits and company assets valued at $38.4 billion. This includes Signature's $12.9 billion in loans. It is reported that New York Community Bank bought these loans at a very low discount, paying only $2.7 billion. Additionally, New York Community Bank also paid for FDIC stock valued at up to $300 million. (CNN)

ChainCatcher news, according to a press release from the Federal Deposit Insurance Corporation (FDIC), New York Community Bank's wholly-owned subsidiary Flagstar Bank will accept all deposits and certain loan portfolios held by the former Signature Bank (Signature Bridge Bank).It is reported that 40 former branches of Signature Bank will operate under Flagstar Bank starting on March 20. Except for depositors related to digital banking, all depositors of Signature Bridge Bank will automatically become depositors of Flagstar Bank, and all their deposits will continue to be insured by the FDIC. Flagstar Bank's bid does not include approximately $4 billion in deposits related to the former Signature Bank's digital banking business. The FDIC will provide these deposits directly to customers associated with accounts related to the digital banking business. (Source link)

ChainCatcher news, according to Proactive Investors, Bitcoin mining company Argo Blockchain stated that one of its subsidiaries holds cash deposits at Signature Bank, and these deposits are safe and accessible. Additionally, Argo and its subsidiaries have no exposure to Silicon Valley Bank or Silvergate. (Source link)

ChainCatcher news, according to CoinDesk, after the collapse of Silicon Valley Bank, Signature Bank, and Silvergate, Digital Currency Group (DCG) is trying to find new banking partners for its portfolio companies. DCG stated that Santander Bank (SAN), HSBC (HSBA), Deutsche Bank (DB), BankProv, Bridge Bank, Mercury, Multis, and Series Financial are still willing to engage with crypto companies.It is reported that these banks may restrict certain services for cryptocurrency companies, such as brokerage and money market services, as well as the ability to remit to third parties. Traditional banks may be willing to set up bank accounts for cryptocurrency companies but will impose restrictions based on the level of exposure to cryptocurrencies. (Source link)

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, TrueUSD tweeted that the U.S. government announced the closure and support of Signature Bank, therefore TrueCoin has suspended TUSD minting and redemption for a few Signature Bank users. The minting and redemption for other users in the TrueUSD banking network remain unaffected. Additionally, a portion of TrueUSD's fiat USD funds is held at Signature Bank, which is now fully supported by the Federal Reserve. Currently, TrueUSD will directly contact TUSD users at Signature Bank. (source link)

ChainCatcher news, Nic Carter, founder of the digital asset company Castle Island Ventures, stated that the government's willingness to support Silicon Valley Bank and Signature Bank means a return to a liquidity-providing model rather than tightening. Historically, loose monetary policy has proven to be a "blessing" for cryptocurrencies and other speculative asset classes, but this instability once again highlights the fragility of stablecoins, as unusual financial conditions may lead them to fall below their fixed value.Additionally, Carter mentioned, "Bitcoin liquidity and overall crypto liquidity will be somewhat impaired because Silvergate's SEN and Signature's Signet were key for crypto companies to obtain fiat currency over the weekend. Now, crypto companies have few options, and liquidity in the industry will be constrained until new banks step in." He hopes that banks will intervene to fill the gap left by SEN. (CNBC)

ChainCatcher news, Crypto.com CEO Kris Marszalek tweeted: "The company's risk exposure to Signature Bank is zero, and we are restoring all USDC services." (source link)

ChainCatcher news, Tether's Chief Technology Officer Paolo Ardoino tweeted that Tether has no exposure to Signature Bank.According to previous reports, Signature Bank was closed by New York state regulators on Sunday. The Federal Reserve, FDIC, and the U.S. Department of the Treasury issued a joint statement saying that all depositors using Signature will be compensated. (source link)