U.S. DOJ Was Investigating Signature Bank's Work With Crypto Clients: Bloomberg
Prosecutors were looking at the crypto-friendly bank before regulators seized it, people familiar told Bloomberg.
Mar 15, 2023 at 2:13 a.m. UTC
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
The U.S. Department of Justice in Washington, D.C., and in New York were investigating possible lax monitoring at Signature Bank to prevent money laundering, Bloomberg reported Wednesday, citing people familiar with the matter.
The U.S. Securities and Exchange Commission was also looking at the bank, the people said.
New York-based Signature Bank, which has a number of crypto clients, was shut down on March 12 by state regulators, the Federal Reserve announced at the time.
The DOJ was watching new accounts and looking for signs of criminal activity in transactions, the people told Bloomberg.
Spokespeople for the Federal Deposit Insurance Corp. (FDIC), DOJ, the U.S. Attorney's Office in Manhattan and the SEC declined to comment to Bloomberg.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/84817985-13a3-47f4-a3ba-e577f3c798ec.png)
Greg Ahlstrand was previously CoinDesk's Asia News Editor. Greg has no significant crypto holdings.