According to insiders cited by Bloomberg, the Ministry of Justice had been conducting an investigation into Signature Bank’s dealings with clients from the crypto sector before its closure.
The inquiry’s primary aim was to ascertain whether the bank had implemented all necessary measures to comply with anti-money laundering (AML) regulations.
These measures include identity verification of account holders and transaction monitoring for any signs of criminal activity.
Furthermore, two sources informed Bloomberg that the US Securities and Exchange Commission (SEC) was also interested in Signature Bank’s activities.
Following the bank’s closure, SEC Chairman Gary Gensler stated, “We are scrutinizing the bank and will take appropriate actions if we uncover any violations of federal securities laws.”
To date, no charges have been filed against Signature’s management, and it is uncertain whether the investigation influenced the authorities’ decision to shut down the bank.
Barney Frank, a board member of Signature Bank, has claimed that US regulators deliberately targeted the bank to harm the cryptocurrency sector.