Crypto banking company Signature Bank was under investigation by two US government bodies prior to its collapse.
Justice Department investigators are investigating whether Signature Bank has taken adequate measures to detect potential money laundering by its customers, Bloomberg reports, citing people involved in the matter.
The US officials, who launched the investigation, were concerned about the banking company’s moves and measures on “signs of crime”. It is not yet known when the investigations will conclude.
Signature Bank Not Subject to Any Accusations
Prior to its collapse, Signature Bank was under investigation by two officials of the US Department of Justice, Bloomberg reported.
The New York-based crypto-friendly bank was under scrutiny on the steps it took and the measures it took on money laundering. Bloomberg stated that these investigations, which were carried out before the bankruptcy of the bank, were not made within the scope of any accusation. In addition, it was not disclosed when the investigations began and their role in closing the bank.
Bloomberg stated that the two people he used as sources did not want to be named. These two people stated that the SEC is also examining the services and activities of the bank.
Barney Frank, a former board member of Signature Bank, claimed on March 13 that regulators wanted to “send a very strong anti-crypto message.”
58548
