• U.S. regulators have offered a bailout to customers affected by the collapse of SVB and Signature bank.
• Bitcoin, Ethereum and stablecoins have seen an increase in value as the crypto market recovers from the banks‘ closure.
• Crypto companies such as Coinbase, Paxos and Celsius have disclosed their exposure to the bank and are expecting to recover their funds with help from the FDIC.
Crypto Banks Collapse: US Regulators Bail Out Customers
The recent collapse of crypto banks SVB and Signature Bank has left customers in distress. In response, U.S. regulators have offered a bailout package to affected customers in order to restore confidence in the crypto market.
Bitcoin, Ethereum & Stablecoin Rally
Bitcoin and Ethereum both saw significant gains over 24 hours, retracing their weekend losses while propping up the cryptocurrency market as a whole. The surge was also indicative of stablecoins regaining their peg after temporarily losing it following news of SVB and Signature Bank’s closures.
Crypto Companies Disclose Their Exposure To Signature Bank
A number of prominent crypto companies including Coinbase, Paxos, and Celsius have come forward to publicly disclose their exposure to Signature Bank prior to its shutdown on March 12th 2023. Coinbase reported that they had approximately $240 million stored at the bank at close of business on Friday 10th March 2021, while Paxos held $250 million at press time but did not disclose how much Celsius had stored there . All three companies expressed hope that they would be able to recover their funds now that U.S regulators are intervening with a bailout package for depositors of this institution .
Recovery From Crypto Market Collapse?
The crypto market has since recovered somewhat following news of government intervention on 13th March 2021; most cryptocurrencies saw positive gains throughout this period as investors returned back into trading activities post-collapse news regarding these two banks..
Signature Bank’s closure means crypto companies will need to transfer their funds elsewhere soon – Circle has already moved its funds from SVB into BNY Mellon – as liquidity levels may take a hit due to loss of access to real-time payment platforms like Silvergate Exchange Network (SEN) or Signet promoted by Signature Bank itself before its demise .