Mar 15, 2023
DOJ, SEC Investigate Collapse of Crypto-Friendly Signature Bank
The crypto-friendly Signature Bank has been the subject of two investigations by U.S. government bodies, according to a recent report by Bloomberg. The Justice Department is looking into whether the bank took adequate measures to detect and prevent money laundering, while the Securities and Exchange Commission is conducting a separate inquiry.
The investigations, which began at an undisclosed time, may have had an effect on the decision by New York state regulators to close the bank on March 12. While Signature and its staff are not accused of wrongdoing, the investigations may still result in charges or further action by the SEC or the Department of Justice.
A class action lawsuit was filed against the bank and former executives on March 14, claiming that they falsely claimed to be “financially strong” just three days before the forced closure. Barney Frank, a former board member of Signature Bank, said that regulators wanted to send a “very strong anti-crypto message” by making the bank the “poster boy”.
Signature Bank is one of three banks to have been closed recently, with Silvergate Capital and Silicon Valley Bank (SVB) also facing closure. The DOJ and the SEC have since initiated separate investigations into the collapse of Silvergate Capital and SVB. The SEC will investigate and bring enforcement actions if any violations of the federal securities laws are found.
The closure of Signature Bank has had a significant impact on the web3 space. Those looking to promote their NFTs will need to find alternative marketing strategies, such as Twitter NFT marketing, NFT marketing agencies, and web3 agencies. For those looking to sell NFTs, it’s important to be aware of the current market conditions and to use a reputable NFT marketing agency to ensure a successful sale.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
