Crypto client exodus caused Signature Bank collapse, Says NY Regulator

The collapse of Signature Bank was one of the most significant bank failures in the financial history of the United States. Analysts believed that an exodus of its crypto clients caused the collapse, but New York regulators vehemently denied this.

The superintendent of the NYDFS now believes that many depositors in the business sector actually caused the failure. Adrienne A. Harris, superintendent of the NYDFS, stated that the outflow of crypto deposits was in exact proportion to the representation in the depositor base overall.

Adrienne A. Harris
Adrienne A. Harris

On the weekend of the bank failure, nearly 20% of depositors walked away from the bank on the same day, out of which only 20%, a fraction of the total exodus, were crypto investors. Digital asset analysts attributed the shutdown of crypto-friendly Signature Bank to a concerted effort by US banking authorities and regulators.

Compiled by Coinbold