Department of Justice Was Investigating Signature Bank for Money Laundering Prior to Closure

Blockchain Daily
1 min readMar 15, 2023

According to sources familiar with the matter, US prosecutors had launched an investigation into Signature Bank’s relationship with its cryptocurrency clients prior to the bank’s sudden seizure by regulators over the weekend.

The Justice Department investigators in Washington and Manhattan were reportedly examining whether the New York-based bank had taken appropriate measures to identify potential money laundering activities by its clients. This included scrutinizing individuals opening accounts and monitoring transactions for any signs of criminal behavior.

In addition, the Securities and Exchange Commission was said to have been conducting its own review of the matter, although the inquiries are confidential and representatives for the agencies declined to comment.

Neither the Federal Deposit Insurance Corp., which assumed control of the bank, nor a spokesperson for the remaining operations of the failed lender responded to requests for comment.