Prior to the shutdown, Signature Bank was checked by the U.S. Attorney General and the Securities and Exchange Commission to respond to suspicious transactions with cryptocurrencies, against the backdrop of “systemic risks.” In this respect informs Bloomberg, citing the source.
The publication noted that the US Department of Justice has repeatedly warned companies working with cryptocurrency that they must be careful in identifying clients and ensuring the legality of funds in financial circulation. In addition, credit institutions are obliged to report suspicious transactions to the authorities.
According to Bloomberg, the bank itself and its employees have not been charged with misconduct, so the investigation could end with no further action. At the same time, it’s unclear exactly when the investigation against Signature Bank began and whether it influenced regulators’ decision to close the bank on March 12. In response, regulators said they lost confidence in company management as they failed to provide reliable and consistent data.
March 14 Bangkok Post knowledgeableinternational rating agency Fitch Ratings downgraded Signature Bank’s long-term corporate rating from BBB+ to D. The downgrade came after state regulators closed the New York bank on Sunday, according to the publication.