Several cryptocurrency companies have at least temporarily ceased accepting deposits made through Silvergate Bank.
Notably, Gemini announced that it no longer accepts wire transfers or ACH deposits made through Silvergate Bank. It indicated that it is “actively monitoring the issue” and has no customer or GUSD cash kept with Silvergate.
In a blog post, Bitstamp similarly announced that it had temporarily halted processing transfers made in dollars through Silvergate. In addition, it declared that Silvergate Exchange Network (SEN) services had been momentarily suspended.
The two businesses used to work closely together because Bitstamp was Silvergate’s SEN Leverage product’s launch partner. Separately, Crypto.com informed CryptoSlate that “USD withdrawals and deposits via Silvergate have been temporarily halted” on its exchange.
It stated that it had informed users of the change in policy and underlined that monies deposited in this manner would be refused. According to MicroStrategy, a loan from Silvergate is due in the first quarter of 2025.
In the event that Silvergate fails, it assured users that the debt will not accelerate. It further stated that it has no other financial connections to the bank or any Bitcoin collateral maintained with Silvergate.
Since MicroStrategy does not offer retail cryptocurrency exchange services, company has never accepted transfers through Silvergate. Several businesses took action earlier.
Earlier today, Coinbase, Circle, and Paxos, among other companies, took a same position toward Silvergate. Tether, on the other hand, claimed to be unaffected by Silvergate.
Prior to today’s mass migration, it was also revealed on Tuesday that LedgerX would stop using Silvergate and switch to the rival provider Signature Bank.
Yesterday, Silvergate disclosed pending regulatory inquiries and said it will submit a 10-K financial report late. That announcement resulted in a rapid decline in the stock’s value. As more companies severed links with Silvergate today, share values decreased even more.
