Crypto exchange Coinbase, crypto lender Celsius and stablecoin issuer Baxos are among the crypto companies whose funding is linked to the now-shuttered Signature Bank.
Crypto-friendly Signature Bank was shut down by New York regulators on March 12, along with the United States Federal Deposit Insurance Corporation to “protect the U.S. economy.”
Crypto exchange Coinbase tweeted on March 12 that Signature had about $240 million in corporate funds that it expected to recover in full.
Coinbase had approximately $240m in corporate cash on hand as of the close of business on Friday, March 10. As stated by the FDIC, we expect to recover these funds in full. https://t.co/XY5L7m4RMs
— Coinbase (@coinbase) March 12, 2023
Stablecoin issuer and crypto firm Paxos also came forward, tweeting that it has $250 million in the bank, which includes private insurance covering the amount not covered by standard FDIC insurance of $250,000 per depositor.
Paxos currently holds $250M in Signature Bank and private deposit insurance in excess of our cash balance and FDIC per account limits. Seeking private deposit insurance is part of our conservative approach to managing client assets that exceed FDIC insurance limits.
— Paxos (@PaxosGlobal) March 12, 2023
The Celsius Official Committee of Unsecured Creditors, the body representing the interests of account holders at the bankrupt crypto lender Celsius, said Signature Bank “retains some of its funds” but did not disclose the amount.
Today the US government announced the closure of Signature Bank, where Celsius held some of its funds. All depositors will be notified as US Governor Celsius and UCC assess the situation and provide further updates. Notification is here: https://t.co/v5GSvTL7JY
— Celsius Official Team of Unsecured Creditors (@CelsiusUcc) March 12, 2023
“All depositors will be made whole,” it added.
Since Signature Bank served many companies in the crypto industry, those companies that had no exposure came forward to equally assuage fears about their respective exposures.
Robbie FergusonCo-founder of Web3 game development platform Immutable X and Mitch LiuThe co-founder of media-focused Theta Network Blockchain separately tweeted that the two respective companies had no exposure to Signature.
Related: Biden vows to arrest those responsible for SVB, signature collapse
Crypto exchange Crypto.com said in a March 12 tweet by CEO Chris Marsalek that it had no money in the bank.
https://t.co/pFc4Pz9nFR Signature Bank has $0 exposure. https://t.co/TG2h7HyXE9
– Chris | Crypto.com (@kris) March 13, 2023
Stablecoin company Tether’s Chief Technology Officer, Paolo Ardoino, similarly did not disclose Tether’s exposure to Signature Bank.
#Tether Signature Bank has no exposure.
— Paolo Ardoino (@paoloardoino) March 12, 2023
Signature Bank’s mandatory closure announcement coincided with other bank-related announcements from US regulators.
The Federal Reserve has announced that the FDIC has approved action to protect depositors at Silicon Valley Bank, a tech-startup-focused bank that has experienced liquidity problems due to the banking movement spreading contagion to the crypto sector.
The central bank also announced a $25 billion plan to ensure banks have enough liquidity to meet the needs of their customers during turbulent times.