US Government Accountability Office Reviews Failures of Banks with Exposure to Crypto Industry

05/11 17:55

The United States Government Accountability Office (GAO) has published a preliminary review of the failures of Silicon Valley Bank and Signature Bank, which included exposure to deposits from the cryptocurrency industry. The GAO report stated that poor governance and unsatisfactory risk-management practices led to the collapse of Signature Bank in March. Although the report did not explicitly state that digital assets were the cause of the bank's failure, it mentioned exposure to the crypto industry alongside potential reasons. The GAO reviewed "large deposits from the digital asset space" in considering whether crypto had contributed to Signature's failure.
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