Crypto-friendly Signature Bank was investigated by the U.S.

 Crypto-friendly Signature Bank was investigated by the U.S.

Department of Justice before its collapse - The U.S. Department of Justice reportedly investigated Signature Bank before state regulators shut it down.
The investigation related to the bank's anti-money laundering measures.
Signature Bank, the crypto-friendly financial institution that was shut down by the New York Department of Financial Services (NYDFS) on March 13, was reportedly the subject of an investigation by the U.S. Department of Justice earlier this week.
According to a report by Bloomberg, Justice Department investigators in Manhattan and Washington were looking into the shutdown bank's relationships with its crypto customers, specifically the steps taken to detect money laundering.

People familiar with the matter revealed that it involved monitoring customers who opened new accounts and reviewing transactions to look for signs of criminal activity. The Securities and Exchange Commission was also part of the investigation.

Asked for comment, a spokesman for SEC referred Bloomberg to a statement issued earlier this week by the agency's chairman, Gary Gensler. On Sunday, Gensler stated:

"We will investigate and take enforcement action if we find violations of the federal securities laws."
It is important to note that Signature Bank employees have not been accused of any wrongdoing to date. It is possible that the investigation will end without any charges being filed. At this time, it is not clear whether the Department of Justice's investigation of the bank had any impact on NYDFS's decision to close the bank.
Regarding its decision to close Signature Bank, the NYDFS has stated that it "has nothing to do with crypto." According to a recent report by Reuters, the New York Financial Services Authority did not have confidence in the bank's leadership following the closure of Silicon Valley Bank.

The regulator was responding to claims made by Signature Bank board member and former U.S. Congressman Barney Frank. He confirmed that Signature Bank's closure had nothing to do with the bank's financial fundamentals. According to the former lawmaker,

"Part of what happened was that regulators wanted to send a very strong anti-crypto message."

Investing.com