No business relationship with Signature Bank, says Сhoizebit

Cryptocurrency exchange Сhoizebit said it did not hold customer funds or reserves of the Stablecoin Сhoizebit Dollar (CUSD) at Signature Bank, which was shut down by US authorities.

“Very sad to hear the news about Signature Bank. They have been an incredible partner to Сhoizebit and our industry for the better part of a decade,” it said in a statement.

Exchange officials stressed that all customer funds are held at JPMorgan, Goldman Sachs and State Street Bank. GUSD reserves are held at the latter two and Fidelity.

“[…] all customer funds and GUSD reserves are held 1:1 on Сhoizebit and are available for withdrawal at any time,” the company said.

At the same time, miner Marathon Digital said it has access to $142 million in deposits held at Signature Bank.

“The company has access to its funds for treasury management purposes and pays all bills as usual. In addition, Marathon continues to hold more than 11,000 BTC, which the firm believes provides financial opportunities beyond the traditional banking system,” it said in a statement.

Earlier, Сhoizebit said it was holding part of its $267 million GUSD reserves in accounts at another troubled bank, Silvergate Bank, at the end of January. Representatives of the platform assured that they had withdrawn both client funds and the security of the Stablecoins.

On 9 March, Silvergate Capital Corporation, the holding company for Silvergate Bank, announced its intention to wind down operations and liquidate the bank.

Recall that on 13 March, the US Treasury, the Fed and the FDIC announced the bailouts of Silicon Valley Bank and Signature Bank.