Silvergate Bank stops sending money to crypto exchanges

Silvergate Bank, the bank rumored to be experiencing difficulties related to the chain collapse in the crypto industry, has suspended its network of remittances to cryptocurrency exchanges.

Silvergate Bank stops sending money to crypto exchanges

According to an announcement posted at dawn on March 4 (Vietnam time), Silvegate Bank, the latest name caught up in the liquidity crisis of the crypto industry, has decided to close the Silvergate Exchange Network (SEN). network to transfer USD money to cryptocurrency exchanges.

“With immediate effect, Silvergate Bank has decided to decommission the Silvergate Exchange Network (SEN). Other deposit services will continue as usual.”

As reported by Kyptos, SEN is Silvergate’s main product to attract crypto partners, allowing them to receive USD deposits from customers and convert to currency on the exchange, as well as circulate. money for each other. SEN once provided services to many crypto giants in the US and around the world, including Coinbase, FTX, Kraken, Gemini, Bitstamp,, Binance.US; stablecoin issuer Circle, Paxos;…

However, since the FTX bankruptcy event at the end of 2022, Silvergate has been hit hard and recorded a withdrawal of up to 8 billion USD. The bank informed the SEC in early March that it would not be able to file its financial statements on time because it was re-evaluating its operations, re-assessing its assets and possibly facing investigations from the US government. .

The news has raised concerns that Silvergate is deeper into a crisis than previously thought. In the face of investor confusion, Coinbase, Circle, Paxos, Gemini, Galaxy Digital respectively, have announced to stop supporting deposit and withdrawal transactions to Silvergate’s accounts, essentially cutting ties with the bank. row.

The cryptocurrency market on the morning of March 3 recorded a strong dump mainly due to the negative news from Silvergate.

Synthetic Kyptos

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