The year 2023 has witnessed back-to-back bank collapses recently. From the collapses of Silvergate Bank, Silicon Valley Bank, and the recent Signature Bank, cryptocurrency-friendly banks have been going down one by one.
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After the recent closure of Silvergate Bank, one of the board members also addressed the fact that the bank’s closure is a strong anti-crypto message. According to the latest report, Signature Bank and three former executives of the bank were sued on Tuesday.
Shareholders accused Signature Bank of fraud
The shareholders accused the bank and the executives of fraud, stating that the bank was strong financially three days prior to the seizure. The class action lawsuit is filed against the bank, former CEO Joseph DePaolo, CFO Stephen Wyremski, and COO Eric Howell. The lawsuit was filed in Brooklyn federal court. The Signature Bank was valued at $6.5 billion prior to its collapse.
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The downfall of Signature Bank is the third one in 2023. However, it is unclear whether this is the end or if more banks are in trouble. The collapse of banks, including Silicon Valley Bank, is considered one of the largest financial turmoils since 2008. Despite all the bank collapses, the cryptocurrency market is doing relatively better, with Bitcoin and other altcoins exhibiting double-digit gains.