The U.S. Department of Justice in Washington, D.C., and in New York were investigating possible lax monitoring at Signature Bank to prevent money laundering, according to recent reports. The probe came to light as the bank faces closure by state regulators and the Federal Reserve.

The DOJ was looking at new accounts and transactions for any signs of criminal activity, Bloomberg reported on Wednesday, citing people familiar with the matter. Meanwhile, the U.S. Securities and Exchange Commission was also looking at the bank, the people said.

Spokespeople for the Federal Deposit Insurance Corp. (FDIC), DOJ, the U.S. Attorney's Office in Manhattan and the SEC all declined to comment.

New York-based Signature Bank, which had a number of crypto clients, was shut down on March 12 by state regulators, the Federal Reserve announced at the time.

Crypto users have long been wary of banks and other financial institutions, as many have been known to shy away from the emerging asset class. With tightening regulations, crypto users are likely to face more scrutiny in the future.