Prosecutors, SEC Investigate Signature Bank's Work With Crypto Clients

Justice Department investigators in Washington and Manhattan were investigating Signature Bank's SBNY work with crypto clients before regulators seized the bank past weekend.
The investigators are also investigating whether the company took adequate steps to detect potential money laundering by clients.
The Securities and Exchange Commission said it is also investigating. "We will investigate and bring enforcement actions if we find violations of the federal securities laws," the SEC chief said.
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The bank and its staff haven't been accused of wrongdoing, and the investigation could end without further action. It's unclear when Signature Bank-related probes were opened. Whether it affected state regulators' decision to close the bank on Sunday, Bloomberg reported citing people close to the matter.
States regulators have said they lost faith in management after the bank failed to provide "reliable and consistent data."
The FDIC has since started looking for a buyer.
Financial watchdogs and Justice Department officials have repeatedly warned that firms handling crypto or related cash must be vigilant in identifying customers and ensuring money flows are for legitimate purposes.