Crypto mining company Marathon Digital Holdings has reassured investors that the company’s cash deposits with Signature Bank are safe and usable starting March 13.
In a statement following the closure of New York’s Signature Bank, Marathon announced that it has approximately $142 million in cash on deposit at Signature Bridge Bank.
Signature Bridge Bank was set up by the United States Federal Deposit Insurance Corporation to manage customer accounts with the recently closed Signature Bank. The bridge bank is designed to ensure the flow of funds is not disrupted while regulators look for a buyer to acquire the signature bank’s assets.
Marathon also confirmed that it has access to its funds for wealth management purposes and is conducting its usual business transactions and paying all bills as usual. Additionally, Marathon still holds over 11,000 Bitcoin (BTC), which the company views as a financial asset that offers flexibility beyond the traditional banking system.
The company also clarified that it has no direct business ties with Silicon Valley Bank, which shut down on March 10.
Signature Bank, a New York-based crypto-friendly bank, shut down on March 12 and was taken over by the New York Treasury Department.
The Federal Reserve said on March 12 that the decision to close the bank was made in cooperation with the FDIC to protect the US economy and boost public confidence in the banking system.
Related: Gemini says no funds at Signature Bank support GUSD
Former US Representative and board member of Signature Bank, Barney Frank, has since suggested that the bank was shut down to broadcast an anti-crypto message, a March 13 CNBC report revealed.
According to Frank, there was no evidence of problems at the bank beyond a $10 billion deposit run, which he attributed to contagion from the aftermath of Silicon Valley Bank.
The closure of Signature Bank makes it the third bank with ties to crypto to collapse in a week, following the closures of Silicon Valley Bank and Silvergate.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.