Kraken cryptocurrency exchange is experiencing issues with the automated clearing house (ACH) withdrawal and deposit channel via Silvergate and in this regard looking to suspend transactions involving ACH.
Kraken apparently informed its users on March 27 that it will no longer accept ACH deposits and withdrawals. According to various online accounts from purported Kraken users, the message was made via email on March 22.
In a statement, Kraken stated that users will no longer have access to the Plaid and ACH Silvergate deposit and withdrawal options from March 27. “No other services, including ACH quick transactions via Online Banking, will be affected by this change,” the company added.
Kraken has urged consumers to review the other available funding solutions, including MVB Bank for Fedwire deposits and withdrawals as well as other immediate buy options, to ensure a seamless funding experience.
Kraken added, “Our staff is striving to make ACH funding available again as quickly as possible.”
Silvergate is one of the crypto-friendly U.S. banks that failed alongside Silicon Valley Bank at the beginning of March. The developments have presented significant obstacles for the cryptocurrency business, as many crypto firms have substantial exposure to banks.
According to CoinGecko data, Kraken is one of the world’s major cryptocurrency exchanges at the time of writing, exchanging more than $1 billion everyday. In 2019, Kraken joined the Silvergate Exchange Network, enabling the company to accept U.S. dollar deposits and withdrawals from Silvergate accounts.
Kraken was not the first cryptocurrency exchange compelled to suspend ACH deposits and withdrawals using Silvergate. Gemini, a cryptocurrency exchange created by the Winklevoss brothers, ceased taking customer deposits and processing withdrawals via Silvergate ACH and wire transfers on March 2.
