Three Major Crypto Firms are Victims of Signature Bank Debacle

Signature Bank has been shut down by the New York Department of Financial Services.
Crypto firms like Coinbase, Celsius, and Paxos revealed their exposures to Signature Bank.
The fall of Signature Bank, following the crash of Silvergate and SVB, shocked the whole financial sector.

According to the recent revelations, the leading crypto exchanges Coinbase, Paxos Trust Company, and Celsius Network have been affected by the Federal Deposit Insurance Corporation’s (FDIC) shut down of Signature Bank on March 12. Accordingly, the FDIC promises to compensate all depositors on March 13.

The crypto firm Coinbase shared a Twitter thread revealing the company’s exposure to Signature Bank. Notably, Coinbase tweeted that it has almost $240 million balance in corporate cash at Signature Bank and added that the company expects to fully recover the funds:

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

Similarly, the New York-based financial institution and technology company Paxos Trust Company revealed on its official Twitter page that the firm held about $250 million at Signature Bank, adding:

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.

In addition, the Twitter page of the bankrupt crypto lending firm Celsius Network’s Official Committee of Unsecured Creditors came forward with the utterance that Celsius had “some of its funds” at Signature Bank, but the amount wasn’t disclosed:

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

Notably, Superintendent Adrienne A. Harris announced that the New York Department of Financial Services (NYDFS) has taken possession of Signature Bank to “protect the US economy” as the bank posed a “systemic risk”.

It is notable that the sudden crash of Silvergate Capital Bank, Signature Bank, and Silicon Valley Bank has affected the financial sector in general, alarming investors and institutions.

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Source: https://coinedition.com/three-major-crypto-firms-are-victims-of-signature-bank-debacle/