FDIC Gives Signature Bank Customers Ultimatum to Shut Down Accounts

The federal deposits insurance corporation (FDIC) has given customers of the shut down Signature Bank a one-week ultimatum to close their accounts. This is coming weeks after New York regulators shut down the bank, citing doubt in its leadership capacity.

By the instruction, digital asset customers of the bank must close their accounts within this time or lose their assets. This may have come as a shock to the customers since an initial agreement by Flagstar bank hinted it would continue working with existing customers.

The FDIC however in a statement today insisted that the agreement did not include holders of digital asset accounts.

 Regulatory Crackdown on Crypto Companies

The U.S has long shown its sentiments against crypto and any organization associated with it. Signature Bank was shut down by New York regulators earlier this month, but Signature is only one of the companies that have suffered such fate.

Even now, top players like Binance are facing allegations bordering on willful evasion of federal laws in the U.S. On the contrary, the U.S does not have clear-cut rules for the industry to follow, making it extremely difficult to live up to expectation.

Crypto Thrives Despite Attacks

In spite of the ongoing attacks on the crypto industry, the crypto market has demonstrated strength which became clear in the recent rally. Bitcoin is currently closing in on $30,000 and experts believe the failure of banks like Signature and the others is contributing in pushing it.

At this rate, faith in traditional institutions may be nearing an all-time low since regulators can clamp down on them at any time.

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