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Signature Bank‘s digital-assets business will not be acquired by a unit of New York Community Bancorp as previously anticipated. Customers’ crypto-related deposits, amounting to approximately $4 billion, will be returned to them directly, according to a deal announced by the Federal Deposit Insurance Corp. (FDIC) on Sunday.
Flagstar Bank’s takeover agreement with Signature Bank, which closed earlier this month and was appointed by the FDIC as a receiver, includes “substantially all deposits and certain loan portfolios,” Bloomberg reported.
On Monday, Signature’s 40 branches will operate as Flagstar locations.
Also Read: US Banking Turmoil Is Good News For Crypto, But Short-Term Challenges Exist: Coinbase
Signet, Signature’s real-time payments network widely used by crypto participants, will be left behind under the FDIC’s receivership, and its fate will be determined at a later date.
This development has made it difficult for crypto platforms and investors to transfer traditional currencies, particularly since the shuttering of Silvergate Capital Corp. and Signature Bank.
U.S. prosecutors were investigating Signature Bank’s crypto-client relationships before the bank’s sudden closure.
Read Next: Crypto Drama Unfolds: Employee Forks Company After Hostile Takeover Attempt
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Image and article originally from www.benzinga.com. Read the original article here.