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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.
Updated Mar 15, 2023, 8:36 p.m. Published Mar 15, 2023, 2:13 a.m.
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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.
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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.
READ MORE: Crypto-Friendly Signature Bank Shut Down by State Regulators
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.
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Crypto group counters Wall Street bankers with its own stablecoin principles for bill
After the bankers shared a document at the White House demanding a total ban on stablecoin yield, the crypto side answers that it needs some stablecoin rewards.
What to know:
- The U.S. Senate's crypto market structure bill has been waylaid by a dispute over something that's not related to market structure: yield on stablecoins.
- The Digital Chamber is offering a response to a position paper circulated earlier this week by bankers who oppose stablecoin yield.
- The crypto group's own principles documents argues that certain rewards are needed on stablecoin acvitity, but that the industry doesn't need to pursue products that directly threaten bank deposits business.
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