The New York State Department of Financial Services (NYDFS) has released a statement clarifying that the closure of Signature Bank, a leading US bank, is not related to cryptocurrencies. The statement was issued to dispel any rumors or speculation surrounding the bank’s closure.
The FDIC took control of a bank, and there were rumors that the bank’s involvement with cryptocurrencies was a reason for its failure. However, the NYDFS has stated that these rumors are untrue.
“Signature Bank’s recent failure was not caused by any involvement in cryptocurrency trading, and there were no allegations of wrongdoing” the statement read. “Instead, the FDIC stepped in because the bank was considered to be financially unstable and its capital and earnings were deemed to be severely lacking”
Signature Bank was a prominent financial institution in the US, boasting over $60 billion in assets. It was well-regarded for its commitment to using technology to drive innovation and growth, especially in the rapidly-evolving fintech space. The sudden closure of the bank was unexpected and has sparked worries about the overall stability of the banking sector.