"Regulators' Mysterious Closure of Signature Bank Raises Eyebrows: A Coordinated Crypto Crackdown?"

Signature Bank, a New York-based financial institution known for being crypto-friendly, has been shuttered by state regulators and is now up for sale. However, any potential buyer must reportedly agree not to engage in crypto-related activities, as per a Reuters report. The bank's closure follows the recent collapse of two other crypto-friendly banks, Silicon Valley Bank and Silvergate Bank, both based in California.

Signature Bank had a significant proportion of crypto clients, accounting for a quarter of its deposits. It was under investigation by the DOJ and SEC for possible inadequate monitoring that may have facilitated money laundering. A class-action lawsuit filed in February accused the bank of being aware of and facilitating the "FTX fraud" by allowing the commingling of FTX customer funds within its Signet payment network.

Speculations suggest that the closure of these three banks may be a coordinated effort by regulators to restrict the crypto industry's access to the banking system. Barney Frank, a Signature Bank board member and former Democratic congressman, also suspects the regulators' anti-crypto motive, despite the New York Department of Financial Services (NYDFS) attributing the bank's closure to a "crisis of confidence" in its leadership. Bids for acquiring Signature Bank are due by March 17.