- The Pennsylvania Department of Banking and Securities closes the Republic First Bank.
- The regulators appoint FDIC as the receiver, with Fulton Bank assuming all deposits and assets of the bank.
- ZeshApps Founder Marto cautions crypto investors against holding money in crypto wallets.
The Federal Deposit Insurance Corporation (FDIC) declared the closure of Republic First Bank sparking debate among the crypto community. While the Pennsylvania Department of Banking and Securities seized the Philadelphia-based bank, the regulators appointed FDIC as the receiver.
As of the end of January 2024, Republic First Bank had about $6 billion in total assets and $4 billion in total deposits. Also, the firm had borrowings and other liabilities of about $1.3 billion. In an official statement, FDIC highlighted the agreement with Fulton Bank that allows the latter to assume almost all deposits and purchase assets of Republic. The statement read,
“To protect depositors, the FDIC entered into an agreement with Fulton Bank, National Association of Lancaster, Pennsylvania to assume substantially all of the deposits and purchase substantially all of the assets of Republic Bank.”
The downfall of Republic First Bank reportedly marks the nation’s first banking failure in 2024. ZeshApps Founder Marto commented on the fall of the bank, cautioning crypto investors against holding money in crypto wallets. In addition, he shared his optimistic belief in Bitcoin, stating, “I think I’ll stick to Bitcoin.”
Pillage Capital, another prominent voice in the market, took to X to share insights on the fall of Republic. He stated, “Republic First Bank failure is worth a look since bank failures are the best possible narrative we can get for crypto.”
Bitcoin, which has been hovering around the $64k level, much below the new all-time high of $73k, over the past few days, declined to $62k following the collapse of the firm. At press time, Bitcoin is trading at $63,007, with a decline of 2.22% over the last 24 hours.
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