Fleeing Crypto Depositors Didn’t Bring Down Signature, NY Says

Signature Bank’s collapse in March was not caused by its crypto clients, but a run by a broad base of depositors across business sectors, according to New York state’s financial regulator.

“It is a misnomer that the failure of Signature Bank was related to crypto,” said New York State Department of Financial Services Superintendent Adrienne Harris in a House Financial Services Committee hearing on stablecoins on Wednesday. Depositors including wholesale food vendors, fiduciaries, trust accounts, law firms left the bank and caused the run, she said.

“The outflow of crypto deposits were in exact proportion to the representation in ...