US FDIC asks Signature Bank crypto customers to close their accounts by April 5

The deposits in question were not part of a rescue deal struck with Flagstar Bank, a unit of New York Community Bancorp, earlier this month.

“Flagstar’s offer did not include approximately $4 billion in deposits related to Signature’s digital asset business,” an FDIC spokesperson said.

“These are the deposits that we encourage customers to move before April 5. If they haven’t done so by that day, we will send the checks to the address on file.”

Flagstar on March 19 reached an agreement with US regulators to buy deposits and loans from New York-based Signature Bank.

The FDIC had said the deal would see Flagstar Bank assume nearly all of Signature Bank’s deposits, some of its loan portfolios and all of its 40 former branches. About $60 billion of Signature Bank’s loans and $4 billion of its deposits would remain in escrow.

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