In the wake of recent bank collapses, Signature Bank and three former executives have been sued for fraud by shareholders. The lawsuit alleges that the bank was financially sound just days before its collapse, valued at $6.5 billion. The lawsuit was filed in Brooklyn federal court, including former CEO Joseph DePaolo, CFO Stephen Wyremski, and COO Eric Howell.
The Collapse of Cryptocurrency-Friendly Banks
The collapse of Signature Bank is the third of its kind in 2023, following the closures of Silvergate Bank and Silicon Valley Bank. This has raised questions about the financial stability of cryptocurrency-friendly banks. After Silvergate Bank's closure, a board member spoke out about the bank's anti-crypto stance, suggesting that the bank's closure sent a strong message against cryptocurrencies.
BREAKING: Signature Bank $SBNY has been sued by shareholders for alleged fraud.
— Paryte (@Parytecom) March 14, 2023
Uncertain Future for Banks and Cryptocurrencies
It is still being determined if more banks will face trouble in the future. The collapse of multiple banks in a short period is considered one of the largest financial turmoils since 2008. Despite this, the cryptocurrency market has remained relatively stable, with Bitcoin and other altcoins showing double-digit gains.
