US Government Agency Released Banking Crisis Review! Important Crypto Detail!

GAO, the Accountability Office of the US central government, has published a review report on Signature and Silicon Valley Bank, which went bankrupt in the past months. In the report, while the reasons for bankruptcy of banks were mentioned, the details of cryptocurrencies blockchain attracted the attention of the community.

Publishing the report in question today, GAO stated the reason for the bankruptcy of banks. “poor management and incorrect risk management” described as. The government agency claimed that crypto may have played an indirect, if not direct, role in the collapse of Signature and Silicon Valley Bank.

“Signature Bank may have been exposed to adverse developments affecting liquidity and digital assets prior to its bankruptcy. Audit staff stated that the bank did not calculate its risk management correctly.”

According to past balance sheet reports, Signature Bank held $12 billion in deposits from companies operating in the crypto industry in 2022.

The Banking Crisis Continues

The repercussions of the banking crisis that started in the United States in recent months continue. In the first days of May, JPMorgan acquired the de facto bankrupt First Republic Bank. First Republic made its history as the second largest bankruptcy bank in the USA.