Signature Bank's Crypto Clients Informed to Close Accounts by April 5

The U.S. Federal Deposit Insurance Corp (FDIC) has informed collapsed lender Signature Bank's cryptocurrency clients that they have until April 5 to move assets and close their accounts with the bank.

The notification comes a week after Flagstar Bank, a subsidiary of New York Community Bancorp, reaching an agreement with U.S. regulators to acqurie deposits and loans from Signature Bank​. "Flagstar's bid did not include about $4 billion in deposits related to Signature's digital-asset business," said a FDIC spokesperson.

The official added: "Those are the deposits we are encouraging customers to move before April 5. If they have not by that day, we will mail checks to the address on record."

Signature Bank was a big lender in the crypto industry. On March 12, the U.S. Treasury, Federal Reserve, and FDIC issued a Joint Statement​ on the banking crisis posed by collapse of Silicon Valley Bank and mentioned the closure of Signature Bank.

According to the regulators, as of the end of 202, Signature Bank recorded total assets of about $110.36 billion and total deposits of about $88.59 billion. Currently, roughly $60 billion of Signature Bank's loans and $4 billion of its deposits would remain with FDIC in receivership.