Marathon Digital: Deposits held at Signature Bank are secure and available

Crypto mining agency Marathon Digital Holdings has assured buyers that the agency’s money deposits at Signature Financial institution are safe and obtainable to be used as of March 13.

In a statement following the closure of New York’s Signature Financial institution, Marathon disclosed that it has roughly $142 million in money deposits at Signature Bridge Financial institution.

The Signature Bridge Financial institution was arrange by the United States Federal Deposit Insurance coverage Company to handle buyer accounts on the just lately shuttered Signature Financial institution. The bridge financial institution is aimed toward guaranteeing the circulate of funds will not be interrupted whereas the regulator searches for a purchaser to amass the property of Signature Financial institution.

Marathon additionally confirmed that it has entry to its funds for treasury administration functions, and is conducting its typical enterprise transactions and paying all invoices as typical. Furthermore, Marathon nonetheless holds over 11,000 Bitcoin (BTC), which the corporate views as a monetary asset that gives flexibility past the traditional banking system.

The corporate additionally clarified that it has no direct enterprise ties with Silicon Valley Financial institution, which shut down on March 10. 

Signature Financial institution, a crypto-friendly financial institution primarily based in New York, was closed down on March 12 and brought over by the New York Division of Monetary Companies.

The Federal Reserve mentioned on March 12 that the choice to shut the financial institution was made in collaboration with the FDIC to guard the U.S. financial system and bolster public confidence within the banking system.

Associated: Gemini says no funds at Signature Financial institution backing GUSD

Former U.S. Consultant and Signature Financial institution board member Barney Frank has since advised that the financial institution was closed to ship an anti-crypto message, a March 13 CNBC report revealed.

In accordance with Frank, there was no indication of issues on the financial institution past a deposit run of over $10 billion, which he attributed to contagion from the fallout of Silicon Valley Financial institution.

Signature Financial institution’s shutdown makes it the third financial institution with ties to crypto to break down in per week, following the closure of Silicon Valley Financial institution and Silvergate.

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