GAO, the Accountability Office of the US central government, has published a review report on Signature and Silicon Valley Bank, which went bankrupt in the past months. While the report addressed the reasons for bankruptcy of banks, the cryptocurrency detail attracted the attention of the blockchain community.
The GAO, which released the report today, described the bankruptcy of banks as "poor management and improper risk management". The government agency claimed that crypto may have played an indirect, if not a direct, role in the collapse of Signature and Silicon Valley Bank.
“Signature Bank may have been exposed to adverse developments affecting liquidity and digital assets prior to its bankruptcy. Audit staff stated that the bank had not calculated its risk management correctly.”
According to past balance sheet reports, Signature Bank held $12 billion in deposits from companies operating in the crypto industry in 2022.
The Banking Crisis Continues
The repercussions of the banking crisis that started in the United States in recent months continue. In the first days of May, JPMorgan acquired the de facto bankrupt First Republic Bank. First Republic made its history as the second largest bankruptcy bank in the USA.