Coinbase, Celsius and Paxos disclose funds in Signature Bank
Crypto exchange Coinbase, crypto lender Celsius and stablecoin issuer Paxos are among the crypto firms with funds reportedly tied up with the now-shuttered Signature Bank.
The crypto-friendly Signature Bank was shut down by New York regulators on Mar. 12 in conjunction with the United States Federal Deposit Insurance Corporation (FDIC) to “protect the U.S. economy” as they claimed the bank posed a “systemic risk.”
Crypto exchange Coinbase tweeted on Mar. 12 that it had around $240 million in corporate funds at Signature that it expected would be fully recovered.
As of close of business Friday March 10 Coinbase had an approximately $240m balance in corporate cash at Signature. As stated by the FDIC, we expect to fully recover these funds. https://t.co/XY5L7m4RMs
Stablecoin issuer and crypto firm Paxos also came forward, tweeting it had $250 million held at the bank but added it held private insurance that covers the amount not covered by the standard FDIC insurance of $250,000 per depositor.
Paxos currently holds $250M at Signature Bank and holds private deposit insurance well in excess of our cash balance and FDIC per-account limits. Seeking private deposit insurance is part of our conservative approach to managing customer assets exceeding FDIC insurance limits.
The Celsius Official Committee of Unsecured Creditors, a body that represents the interests of account holders at the bankrupt crypto lender Celsius, added Signature Bank “held 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 made whole, per US Gov. Celsius and the UCC are evaluating the situation and will provide further updates.
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