- Justice Department investigators in Washington and Manhattan were investigating Signature Bank’s (NASDAQ:SBNY) work with crypto clients before regulators seized the bank past weekend.
- The investigators are also investigating whether the company took adequate steps to detect potential money laundering by clients.
- The Securities and Exchange Commission said it is also investigating. “We will investigate and bring enforcement actions if we find violations of the federal securities laws,” the SEC chief said.
- Related: Moody’s Warns Of ‘Rapid Deterioration’ In Banking Environment, Evaluates Comerica, Western Alliance And More.
- The bank and its staff haven’t been accused of wrongdoing, and the investigation could end without further action. It’s unclear when Signature Bank-related probes were opened. Whether it affected state regulators’ decision to close the bank on Sunday, Bloomberg reported citing people close to the matter.
- States regulators have said they lost faith in management after the bank failed to provide “reliable and consistent data.”
- The FDIC has since started looking for a buyer.
- Financial watchdogs and Justice Department officials have repeatedly warned that firms handling crypto or related cash must be vigilant in identifying customers and ensuring money flows are for legitimate purposes.
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