Signature Bank, the crypto-friendly financial institution that was shut down by the New York Department of Financial Services (NYDFS) on 13 March, was reportedly the subject of a probe by the United States Department of Justice earlier this week.
According to a report by Bloomberg, DoJ investigators in Manhattan and Washington were looking into the downed bank’s relationship with its crypto clients, specifically the steps taken to detect money laundering.
People familiar with the matter revealed that this involved monitoring clients who were opening new accounts and scrutinizing transactions to look for signs of criminal activity.
The Securities and Exchange Commission was also a part of the probe. When asked for a comment, an SEC spokesperson directed Bloomberg to a statement made by the agency’s chairman Gary Gensler earlier this week.Read more on ambcrypto.com