This Cryptocurrency Exchange Has Millions of Dollars Left in the Closed Signature Bank!

Cryptocurrency exchange coinbasecrypto lender Celsius and stablecoin issuer Paxosclosed Signature Bank It is among the crypto firms with funds reported to be linked to

Cryptocurrency Exchange Coinbase Announces Funds in Celsius and Paxos Signature Bank

Crypto-friendly Signature Bank was shut down by New York regulators on March 12, along with the United States Federal Deposit Insurance Corporation (FDIC), in an effort to “protect the U.S. economy” for alleging that the bank posed a “systemic risk.”

Crypto exchange Coinbase tweeted on March 12 that it has approximately $240 million in institutional funds in Signature that it expects to be fully recovered.

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

Stablecoin issuer and crypto firm Paxos also tweeted that it holds $250 million in the bank, but added that it has private insurance that covers the amount not covered by standard FDIC insurance of $250,000 per depositor.

Paxos currently holds $250M at Signature Bank and holds private deposit insurance well in excess of our cash balance and FDIC per-account limits. Seeking private deposit insurance is part of our conservative approach to managing customer assets exceeding FDIC insurance limits.

— Paxos (@PaxosGlobal) March 12, 2023

The Celsius Official Unsecured Creditors Committee, an organization representing the interests of account holders at bankrupt crypto lender Celsius, added that Signature Bank “holds some of its funds,” but did not disclose the amount.

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

He also stated that “all depositors will be brought together as a whole”.

As Signature Bank serves many firms in the crypto industry, firms with no affiliation have done the same to allay their fears about their risk.

Crypto exchange Crypto.com also reported that its CEO, Kris Marszalek, had no money in the bank via a tweet on March 12.

Paolo Ardoino, chief technology officer of stablecoin firm Tether, similarly tweeted that Tether is not exposed to Signature Bank.

The announcement of Signature Bank’s mandatory closure came in line with other banking-related announcements from US regulators.

The US Federal Reserve said it approved the FDIC’s action to protect depositors at Silicon Valley Bank, a tech startup-focused bank facing liquidity problems due to a banking crisis that plagued the crypto industry.

*Not investment advice.