According to reports, the now-defunct Signature Bank held funds for several crypto companies, including crypto exchange Coinbase, bankrupt crypto lender Celsius, and stablecoin issuer Paxos.
Recall that on March 12, the Federal Deposit Insurance Corporation (FDIC) and New York regulators closed the bank, citing it as a systemic risk to the American economy.Coinbase, one of the crypto companies that held funds with Signature Bank, announced on Twitter that they had approximately $240 million in corporate funds at Signature Bank. They expect to recover the funds in full.
As of close of business Friday March 10 Coinbase had an approximately $240m balance in corporate cash at Signature. As stated by the FDIC, we expect to fully recover these funds. https://t.co/XY5L7m4RMs
— Coinbase (@coinbase) March 12, 2023
Coinbase reassured customers that despite the recent turmoil in the traditional banking industry, it would continue with business as usual. They stated that FDIC pass-through insurance would still safeguard their cash at banks and that all client funds are secure and accessible, including USDC conversions, which will resume today.
According to the Celsius Official Committee of Unsecured Creditors, a group advocating for the rights of account holders, Signature Bank held some of the funds of the bankrupt cryptocurrency lender Celsius. However, the group chose to withhold the amount but assured all depositors would be fully reimbursed.
Today the US government announced the closure of Signature Bank where Celsius held some of its funds. All depositors will be made whole, per US Gov. Celsius and the UCC are evaluating the situation and will provide further updates. Announcement here: https://t.co/v5GSvTL7JY
— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) March 12, 2023
Paxos, a cryptocurrency company and stablecoin issuer, also disclosed that it had $250 million in deposits at Signature Bank. In addition to the standard FDIC insurance of $250,000 per depositor, they have private insurance to cover any remaining balance. They also clarified that they had no relationship with Silicon Valley Bank, which collapsed on Friday, March 10.
Statement from Paxos: Paxos has no relationship with Silicon Valley Bank. For further certainty, Paxos stablecoins have zero exposure to Silicon Valley Bank failure.
— Paxos (@PaxosGlobal) March 10, 2023
Crypto.com has also verified that it had no deposits or lending involvement with the now-defunct New York bank.
https://t.co/pFc4Pz9nFR has $0 exposure to Signature Bank. https://t.co/TG2h7HyXE9
— Kris | Crypto.com (@kris) March 13, 2023
Signature Bank is currently working with other banking partners for all customer cash transactions due to the FDIC’s suspension of their transactions.
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