Signature Bank Crypto Clients Face April 5 Deadline to Withdraw Funds: FDIC Mandate

Following the bank’s closure last month, Signature Bank has set an April 5 deadline for crypto clients to withdraw funds. The urgency stems from the U.S. Federal Deposit Insurance Corp (FDIC), which has informed collapsed lender Signature Bank's crypto clients that they have until April 5 to close their accounts and move their assets. Specifically, the FDIC will begin account closures after this date.

The Federal Deposit Insurance Corp. (FDIC) is trying to hurry the stranded crypto customers out the door of the temporary entity that holds the assets of the former Signature Bank. According to Bloomberg, the US Federal Deposit Insurance Corporation (FDIC) informed customers of the failed Signature Bank to close their accounts and move their funds elsewhere.

This abrupt deadline leaves crypto clients scrambling to find alternative banking solutions and raises concerns about the FDIC's approach to managing the fallout from Signature Bank's collapse. The April 5th deadline marks a significant date for the crypto industry and highlights the ongoing challenges in integrating digital assets within the traditional financial system.