JPMorgan is mentioned to have severed ties with cryptocurrency exchange Gemini following warnings from US authorities.
Second CoinDeskJPMorgan has terminated its partnership with Gemini, a cryptocurrency exchange licensed by the New York government.
JPMorgan has only two customers, a cryptocurrency corporation, like Coinbase and Gemini, which has been supporting USD transactions for these two platforms given that 2020. Coinbase representatives confirmed with CoinDesk that the connection with JPMorgan continues usually.
JPMorgan’s move comes as a financial institution with huge publicity to the cryptocurrency sector in the US, Silvergate Bank, is in the midst of a crisis when it is late filing economic statements with the SEC, only to be blocked by regulators . concluded the report.
Following the collapse of the FTX exchange, US officials earlier this 12 months issued a warning to banking institutions that have partnerships with the cryptocurrency marketplace, highlighting the dangers this sector poses. Since then, two other main cryptocurrency exchanges, Binance and Bybit, have admitted to dropping their US banking spouse.
Federal Reserve Chairman Jerome Powell in his testimony in advance of the US Senate on March seven the moment once more described this situation.
Gemini is 1 of the oldest cryptocurrency exchanges in the United States, founded by the billionaire Winklevoss brothers, who the moment sued Mark Zuckerberg in court above the strategy of forming the social network Facebook. In early 2023, Gemini made the decision to publicly contradict lending platform Genesis for holding $850 million in consumer deposits following Genesis blocked withdrawals due to FTX involvement.
After coming beneath strain, Genesis had to file for bankruptcy in late January. Both Gemini and Genesis are beneath investigation by the SEC above transactions concerning the two.
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