• The FDIC is taking enforcement action against Cross River Bank, a crypto-friendly financial institution in New Jersey, for failing to keep customers’ assets safe.
• The bank has been ordered to boost supervision of its management team and implement internal controls and credit underwriting.
• CRB is looking forward to working with the FDIC and implementing appropriate safety measures.
FDIC Goes After Crypto-Friendly Institution Cross River Bank
The Federal Deposit Insurance Corporation (FDIC) is taking enforcement action against Cross River Bank (CRB), a crypto-friendly financial institution stationed in New Jersey. The order was filed in early March, claiming that the bank has not done enough to protect traders‘ and customers‘ assets.
Bank Ordered To Strengthen Internal Controls
The FDIC has ordered CRB to boost the supervision of its management team, as well as implementing internal controls and credit underwriting practices. This means that the institution must assume all responsibility for transactions regardless of their sizes or the assets involved.
CRB Looking Forward To Working With FDIC
An anonymous spokesperson for CRB stated that the bank has not admitted to any wrongdoing, but it is looking forward to working with the FDIC and implementing appropriate safety measures.
America Experiencing Worst Banking Crisis Since 2008
The United States is currently experiencing its worst banking crisis since 2008 due to numerous institutions crashing and burning—such as Silicon Valley Bank, Signature, Silvergate, and Credit Suisse—or coming close like First Republic did recently before being saved at the last minute through buyouts.
Cross River Bank must now comply with new regulations set forth by the FDIC in order to ensure customer protection while continuing its services related to cryptocurrency trading. The bank is committed to working with this organization so that it can continue providing these services without worrying about another potential crash or bankruptcy situation like so many others have faced in recent months.