The US Department of Justice is clarifying the collapse of famous “crypto-friendly” banks before being shut down and confiscated by the authorities.
Regarding the bankruptcy of SVB and Signature Bank – the units specializing in handling USD for many large crypto companies in the US, local media yesterday (March 14) reported that the Ministry of Justice (DOJ) of this country has opened investigation of the cases.
NEW: US authorities are examining the collapse of Silicon Valley Bank for misconduct by officers, including whether stock sales by executives violated trading rules https://t.co/OK7DXqHXed
— Bloomberg (@business) March 14, 2023
According to the sheet Bloomberg, the US Department of Justice’s investigation into the two banks is currently in the early stages. Two sources familiar with the matter confirmed the investigation would look into whether SVB executives sold shares before the bank’s collapse, track down criminal activity and correlate customers with other sectors. crypto sector.
At the same time, the US Securities and Exchange Commission (SEC) also began to conduct independent verification of the case. However, the above agencies have declined to comment on this information.
As Kyptos reported, NYDFS ordered the shutdown of Signature Bank over the weekend and handed it over to the Federal Deposit Insurance Corporation (FDIC). Two days ago, the 16th largest bank in the US Silicon Valley Bank also received the same decision from the governmentbecoming the biggest bank crash since the 2008 financial crisis.
Because they do not want the wave of bank run to spread, the US Federal Reserve (Fed), the Ministry of Finance and the FDIC have decided to intervene and commit to refund deposits at SVB.
On the same day the investigation was announced, the New York financial regulator clarified that the decision to close Signature Bank had nothing to do with the crypto industry and was not even required to take over to combat the industry, as alleged.” want prestige” before.
The US Department of Justice recently turned over the collapse of LUNA-UST in May 2022.