According to multiple media reports, cryptocurrency exchange Binance is struggling to find a new bank partner in the U.S. to handle its customers' money after the failure of Signature Bank (SBNY).
Previously, the deposits of Binance customers in the U.S. were sent to either Signature Bank or Silvergate Capital (SI), both of which were crypto-friendly lenders.
However, both of those banks failed in March, leaving Binance scrambling to find a new banking partner in the U.S.
Binance is currently using an intermediary to store money, a process that is slowing the sending and moving of funds to its customers.
The exchange has tried unsuccessfully to establish new relationships with Cross River Bank and Customers Bancorp (CUBI) but has run into concerns among American lenders about regulatory risks and oversight.
In March, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance along with its chief executive officer (CEO), alleging that they were operating an “illegal” exchange and a “sham” compliance program.
Since that lawsuit was filed, investors have withdrawn $1.6 billion U.S. from the Binance exchange.
